[Introduction ...] The goal of this contribution is to take stock of the academic and policy discussions on the fiscal institutions of EMU, to confront the framework in place with what is known of the desirable properties of fiscal policy in a monetary union, and to discuss possible...

The euro area today consists of a competitive, moderately leveraged North and an uncompetitive, over-indebted South. Its main macroeconomic challenge is to carry out the adjustment required to restore the competitiveness of its southern part and eliminate its excessive public and private debt...