European Public Finance

Aim of the course:

The course aims to introduce students to the main issues of public finance in the European Union. Students will learn how the Union's revenue is generated and how it is spent. We will discuss various coordination problems related to public debt, taxation and environmental policy. Economic policy will be discussed using simple models to highlight key problems.

After completing the course, students will have an insight into the central financial policy areas, institutions and regulations of the EU. They will be able to identify and analyse economic policy problems using theoretical models.

 

Structure of the course:

1. The European Union: history and institutions 

2. The budget of the European Union 

3. Public debt, financial crisis and fiscal integration in EMU 

4. The European debt crisis and the ESM 

5. Towards a fiscal union in the euro area 

6. Tax competition or tax coordination in Europe?

7. Tax competition vs. tax coordination w/ capital income taxes 

8. European climate policy: Emission trading and Green Deal 

 

Prerequisites: 

Students attending this course should have some basic knowledge of microeconomics. The course is taught in English.

 

Literature:

Relevant lecture notes will be provided.

 

Grading:

Grading will be based on an optional mid-term examination and the usual mandatory final examination at the end of the semester. The optional mid-term exam can only improve (not lower) the grade of the final exam.