Euro-Area Fiscal Stance: Definition, Implementation and Democratic Legitimacy

This paper discusses the concept of Euro Area Fiscal Stance (EAFS), the current state of the EAFS and the instruments available to manage it. It closes with a proposal on how the management of the EAFS could be improved. The proposal comes in two parts. First, I discuss how the management of the EAFS could be improved within the boundaries of the Treaties. Next, I discuss a more ambitious plan, which might require a Treaty change.