Recommendations for Europe

Chapter 2: The European Balance-of-Payments Problem: Introduce ‘euro-standard’ bills / Settle Target balances. Chapter 3: Banking Regulation: Promote European financial integration / Give national central banks a supervisory role / Redesign the euro area’s financial architecture. Chapter 4: Lessons from Sweden: Develop a culture of fiscal transparency and public debate / Frame budget decisions in the right way / Promote output growth to boost fiscal sustainability. Chapter 5: Lessons from Hungary: Decouple fiscal policy from election cycles / Set up independent fiscal watchdogs to ensure fair-play / Introduce stronger enforcement mechanisms. Chapter 6: Pricing Climate Change: Do not treat different renewable energy technologies inconsistently / Promote mitigation and introduce a common CO2-tax.