Playing the chicken game: The conflict over Italy’s draft budget reveals a construction flaw in the EMU

The next period of nightlong European summits and standoffs between the European institutions and one of its member states is looming: Italy and the EU are at odds about its new budget proposal. This is a result of the setup of the Economic and Monetary Union, which will continue to produce such stalemates as long as dominant countries make common rules for their own sake and others try to circumvent them.

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The Italian Budget Drama – Brussels and Rome on Collision Course

The EU Commission has, for the first time, rejected a budget plan of a member state. While the Italian government drums its chest and the markets get increasingly nervous, the situation remains deadly serious. It is moreover deeply symptomatic of the potential, limits and fundamental shortcomings of the current architecture of Eurozone fiscal governance.

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The Conservatives’ 2015 Fiscal Charter: A Wanting Desire for Constitutional Change

The UK Conservatives’ "Charter for Budget Responsibility" has, with the aid of a number of Labour MPs, passed the House of Commons. The charter’s intention is that of committing the current and future Governments into running a permanent budget surplus – a sinister attempt to bind future governments as regards fiscal policy. Its inconsistency with the opposition against the EU Fiscal Compact in 2011/12 exposes, though, how much the Conservative’s desire to constitutionalize fiscal surplus policy in the UK is wanting.

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The Conservatives’ 2015 Fiscal Charter: A Wanting Desire for Constitutional Change

The UK Conservatives’ "Charter for Budget Responsibility" has, with the aid of a number of Labour MPs, passed the House of Commons. The charter’s intention is that of committing the current and future Governments into running a permanent budget surplus – a sinister attempt to bind future governments as regards fiscal policy. Its inconsistency with the opposition against the EU Fiscal Compact in 2011/12 exposes, though, how much the Conservative’s desire to constitutionalize fiscal surplus policy in the UK is wanting.

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