Wolff, Guntram B., (2012), ‘A budget for Europe’s monetary union’, Bruegel Policy Contribution, Issue 2012/22.
In a monetary union, national fiscal deficits are of limited help to counteract deep recessions; union-wide support is needed. A common euro-area budget (1) should provide a temporary but significant transfer of resources in case of large regional shocks, (2) would be an instrument to counteract severe recessions in the area as a whole, and (3) would ensure financial stability.