The idea of enhanced fiscal integration in Europe is a key concept in overcoming the sovereign debt crisis in Europe and stabilising the European Currency Union. Various ideas regarding the design of a fiscal union have been put forward. Proposed concepts range from a tightening of fiscal rules and their enforcement through fiscal equalisation mechanisms to first steps towards a joint European tax and transfer system.

The project "Automatic Fiscal Stabilisers in the EU During the Recent Crisis - Perspectives for a Fiscal Union?" analyses the impacts of reforms on the automatic fiscal stabilisation effects of national tax-benefit systems during the recent economic crisis and its aftermath, and assesses different proposals for implementing a European fiscal union.

We use the microsimulation model EUROMOD for the quantitative analysis of the stabilising and redistributive effects of the reforms and policies.