After the outbreak of the global financial crisis, some governments in the EU experienced serious fiscal problems … before and after the outbreak of the crisis. Fiscal reaction functions of the primary balance are estimated for different … groups of EU countries using quarterly data for the pre-crisis period 2001-2008 and for the crisis period 2009-2014. The pre-crisis …

We use an overlapping generations model to show that a bail-out is the optimal response to a fiscal crisis when the … be optimal expost, the no bail-out rule is not credible ex-ante. To make it credible, one would have to look for …

The European debt crisis triggered a debate on the lacking components of the EU and EMU integration architecture. Many … Eurozone.Each variant of fiscal integration must be based on sound foundations of fiscal discipline. Market discipline, i … problem. Unfortunately, since 2010, the ‘no bail out' principle has been replaced by a policy of conditional bailout of …