weaker economies. Without free labour mobility, fiscal transfers are the euro area’s only option to ease debt repayment and, by stimulating economic activity, boost employment.
“Moving to a fiscal union, along the lines of the US Federal model, will not be easy, as it requires a resource that is in short supply in Europe today: mutual trust, particularly between the north and the south,” Dr Papantoniou said. Binding the union closer together could prove critical to building such trust. One strategy that combines rationality with the gradualism needed to overcome political resistance would be to increase the union’s central budget so that it can ultimately play a macroeconomic role, promoting stability and reinforcing cohesion in the euro area.
A representational image of people using mobile phones.— TheNews/File LAHORE: Children left alone with their...
Participants posing for photo after unveiling ceremony of IAPEX 2025 logo. — Instagram@iap.ric/FileKARACHI: The...
A Haleon session seen in this undated image. — Instagram@buzzessence/FileKARACHI: Haleon Pakistan Limited has...
An undated image of gold jewellery displayed at a store. — AFP/FileKARACHI: Gold prices rose by Rs1,000 per tola on...
A sign with the logo is on display at a McDonald's restaurant in Moscow, Russia May 16, 2022.— ReutersLONDON: As...
A healthcare professional prepares a vaccine dose. — AFP/FileLAHORE: Pakistani consumers are facing a dual menace --...