While economists were pointing out the advantages of the EU enlargement, politicians and policymakers were raising … grave concerns about the significant political and economic differences between the newcomer states (EU12) and the "old … Europe" of EU15. The major point of apprehension was related to the labor markets. Visceral fear rendered more than one in …

study the economic effects of introducing two elements of a fiscal union: Firstly, an EU-wide tax and transfer system and … secondly, an EU-wide system of fiscal equalisation. Using the European tax-benefit calculator EUROMOD, we exploit … countries. These effects depend on income levels and the structures of the existing national tax and transfer systems. The EU …

the redistributive effects of different tax benefit instruments in the enlarged EU based on two approaches. Inequality …

income shock in the EU, compared to 32 per cent in the US. In the case of an unemployment shock 48 per cent of the shock are … absorbed in the EU, compared to 34 per cent in the US. This cushioning of disposable income leads to a demand stabilization of … 23 to 32 per cent in the EU and 19 per cent in the US. There is large heterogeneity within the EU. Automatic stabilizers …