Europe's leaders agreed on Thursday to plans for a â??fiscal facilityâ? to help eurozone countries cope with shocks, opening the door to partial budgetary union.
The joint fund is to go far beyond crisis firefighting or enforcement of fiscal discipline on states in trouble. EU documents describe it as a fiscal buffer to offset the booms and busts caused by the EMUâ??s one-size-fits-all interest rates, along the lines of Americaâ??s system of fiscal transfers to depressed regions.
Read Full Article »