In a 2016 paper, Spath analyses the pros and cons of the three major reform options sketched out earlier. Table 2 summarises the findings: Red cells indicate the major flaws of the proposals and obstacles, yellow cells indicate difficulties that can be overcome, and green cells are used when no flaws or major problems are identified. Grey cells are used where a judgement is not possible, or inappropriate. Instruments based on output gap estimates suffer from the imprecision of the indicator. On the other hand, such an instrument would not interfere with national labour markets and its implementation would not require Treaty change. A genuine European unemployment insurance on the other hand appears to be more demanding in legal terms. The biggest challenge for a re-insurance approach remains in finding an adequate threshold for when to trigger pay-outs. In other terms, how to determine as of what magnitude a euro-area wide system should deliver its stabilisation capacity.
Assessment of proposals
We write about
Disclaimer and Copyright statement
The content of all documents (and articles) contained in this blog is the sole responsibility of the author and any opinions expressed therein do not necessarily represent the official position of the European Parliament. It is addressed to the Members and staff of the EP for their parliamentary work. Reproduction and translation for non-commercial purposes are authorised, provided the source is acknowledged and the European Parliament is given prior notice and sent a copy.
For a comprehensive description of our cookie and data protection policies, please visit Terms and Conditions page.
Copyright © European Union, 2014-2023. All rights reserved.