Fiscal Federalism: a Solution for the European Union during the Crisis?

Abstract

Addressing the cumbersome state-level fiscal crisis in the EU can be made and on the lack of afiscal federalist its architecture. Fiscal federalism is, inter alia one of the principles of European fiscal policy,redistribution of political responsibilities between independent countries. This article survey the potentialcapacity of a system compared to that of the EU fiscal capacity of a system from a state with a federalorganizational structure, as the U.S., addressing eight areas in crisis prevention and combating tax. Thiscomparison helps to establish priorities for the European fiscal system, leading to the conclusion that a morefederalist is not the most important measure to be adopted to combat state-level fiscal crisis in the EU.

Keywords

• redistribution of political responsibility
• tax policy
• fiscal crisis