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• W1973924039 abstract "The sovereign debt crisis has exposed the weaknesses of the regulative and institutional arrangements of the European Monetary Union. A number of American scholars have highlighted that there are lessons on federalism for Europe to learn from the USA. But to what extent can the US model of fiscal federalism be transferred to the European context? Our general assumption is that besides the differences of the historically developed institutions, structures and economic concepts, it is the different logic that has and is driving the two integration processes that would impede such a transfer. Basing the argument on Oates’ theory of two generations of fiscal federalism, we see that the USA – building on a firm constitutional framework – provided for a crucial role of central government in macro-economic stabilization, whereas the European Union (EU) style of fiscal federalism remains contractual. Although transfers are inevitable, the EU shuns the logic of financial solidarity as economic divergencies cannot be harmoniously accommodated by a commitment to a common constitutional framework. As crisis management largely relies on an intergovernmental decision-making process, it enhances the power of creditor states vis-à-vis the debtor states and follows the logic of ‘surveillance and punishment’. The European emphasis is on controlling the moral hazard and the most likely outcome of the crisis will be differentiated integration." @default.
• W1973924039 created "2016-06-24" @default.
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• W1973924039 date "2015-04-03" @default.
• W1973924039 modified "2023-10-18" @default.
• W1973924039 title "‘Obligations of good faith’: on the difficulties of building US-style EU federalism" @default.
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• W1973924039 doi "https://doi.org/10.1080/13569775.2015.1030172" @default.
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