The paper examines the development of Italy�s public finances after the consolidation period 1992-97, which secured participation in the European Monetary Union from the outset. The �structural� developments in the main budgetary components are assessed, excluding the effects of...

The experience of other successful monetary unions and economic theory suggest that the euro area would benefit from the establishment of a supranational fiscal capacity. Institutional reforms prompted by the crisis (e.g., the European Stability Mechanism and the banking union) are introducing...