Fiscal Union

When commenting on the ‘Fiscal Union’ in the context of EU law, one needs to start by explaining what is meant by this notion, since the chosen definition will determine what is (and, consequently, what is not) discussed in the following chapter. On a very general level, the term ‘Fiscal Union’ refers to the integration of fiscal policies, i.e. the decisions taken both regarding the collection as well as the expenditure of public resources (most notably, taxes) to influence the economy. Interpretations, however, range ‘from a set of common fiscal rules to the creation of a fully federal government with tax and spending authority’. In the EU context, proposals on both ends of this spectrum are not new.