The Chair of CFP, Nazaré da Costa Cabral, attended today the conference "The euro 20 years on: the debut, the present and aspirations for the future", which took place at Banco de Portugal in Lisboa.
In this presentation, the way in the process of construction of EMU and especially after the recent crisis evolved from a model of 'budget union' (inspired by the theoretical framework of Financial Federalism), to the construction of a model based on a " fiscal capacity". It has also been pointed out that several instruments proposed to give body to this budgetary capacity have been highlighted.
The option to be taken in the near future will reflect the intention to move forward or not towards further centralisation of fiscal policy. Opposite models – centralisation versus decentralisation of budgetary policy – compromise solutions can be allowed which, by implying a common disciplinary framework, guarantee member states the preservation of a field of fiscal autonomy. In this context, independent budgetary institutions (national and European) may play a crucial role.