Saturday, 5 September 2015
By George: someone’s got it – EZ countries might be none too happy with fiscal union.
A thousand members of the chattering classes have been telling us for the last few years that what the Eurozone needs is fiscal union. As I pointed out some time ago, fiscal union would involve very much the same problems as the EZ suffers at the moment.
For example core countries under fiscal union might be none too happy at donating vast sums to less well off / more profligate countries. I also predicted that sooner or later, someone would tumble to that point.
Well it seems someone has indeed tumbled to it. See this Brussels Times article.
Further explanations as to how and exactly why the chattering classes are talking thru their rear ends will hopefully appear here in due course…:-)
(I learned about that Brussels Times article thanks to a tweet by Simon Wren-Lewis)