European Public Finance

Aim of the course:

The course aims at introducing the main public finance issues in the European Union. Students will learn how the revenues of the Union are generated and how they are spent. We will discuss the various coordination problems with respect to environmental policy, international taxation and public debt. Economic policy is discussed with simple models, which highlight the central 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
 

The European Union: History and Economic Rationality

     Evolution and History of the EU

     Institutional Structure and Finance

     Economics of a Federal System

 

Environmental and Climate Policy

     A Crash Course in Environmental Economics

      Climate Policy as a New Challenge

 

Tax Competition or Tax Coordination in Europe?

      Consumption Taxation in Europe: Design and Perspective

      Taxation of Capital Income: The Coordination Dilemma

 

Sovereign Debt, Financial Crisis and Fiscal Integration in Europe

       Stability and Growth Pact: Motivation, Design and Weakness

       European Debt Crisis and the European Stability Mechanism (ESM)

       Towards a Fiscal Union in the Euro Area

 

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.