In terms of EMU, the plan to introduce a common, centralized revenue and expenditure policy in addition to arrangements already in place, such as the fiscal pact. According to this plan, EMU members would have to dispense with national fiscal policies altogether. However, this is only possible by amending the Treaty on European Community, which, according to the national constitution, requires a prior referendum in most member states. – It is doubtful, however, whether a fiscal union alone will solve the difficulties faced by many EMU member states. High unemployment or lack of competitiveness would not disappear, and the need for adjustment would remain. Moreover, it is doubtful that a fiscal union would of itself create what is called a “culture of stability”: namely, the understanding that this generation must not consume resources in anticipation of times to come through the means of government debt. – See banking supervision, European, blackmail potential, European Monetary Fund, monetary stability, Stability and Growth Pact, subsidiarity principle, imbalances, EMU-internal, economic policy, European. – Cf. Annual Report 2011 of the Deutsche Bundesbank, pp. 37 ff. (economic coordination in the EU in general and in particular; overview; references).
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