An unemployment reinsurance scheme benefiting countries hit by asymmetric shocks attracts what to some will be surprising support across the EU

Experts argue that European Monetary Union (EMU) has to be completed by ‘automatic fiscal stabilisers’. Welfare states have built-in stabilisers which cushion economic shocks—unemployment benefits, for instance, support the purchasing power of people who lose their jobs and so sustain effective demand. The argument about EMU is that a monetary union needs mechanisms to buttress or complement the automatic stabilisers of its member states. One option would be reinsurance of national unemployment-benefit schemes at the eurozone level.

A survey across European Countries found surprising levels of support for such an initiative. Read more https://www.socialeurope.eu/unemployment-reinsurance

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