الفهرس Only 14 pages are availabe for public view
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Abstract
After the euro zone countries unified their monetary policies under the authority of ECB, they legislated SGP to coordinate their fiscal policies. But, although the SGP was created to decrease negative fiscal externalities especially in the euro - zone, but the EU witnessed a lot of sovereign debt crises affected negatively the economic and financial performance of EU as a whole. Fiscal policy remained under the authority of national governments in euro - zone, while monetary policy is unified under ECB. This does not produce better results. Therefore, europe’s economic governance is incomplete, as what one MS does, increasingly affects all others, and inconsistent policy objectives would lead to welfare lowering outcomes. This creates problems of efficiency and undermines the legitimacy of european integration. The research problem is in the fiscal policy distortions and diversity between euro zone member states this raises the importance of better coordinating fiscal policies in EMU