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Editorial - MEF - P.C. Padoan: European unemployment insurance scheme

image-10/08/2015 - 15:57October 6, 2015 – The Italian Ministry of Economy and Finance released a paper by SEP Scientific Council Member Pier Carlo Padoan, in which he proposes an European unemployment insurance scheme. Emphasizing the social costs of the economic crisis, he argues that a monetary union needs an “appropriate incentive structure” in order to minimize moral hazard and avoid permanent transfers from certain countries to others. He suggests that the new European Unemployment Insurance Fund could be administered by the Commission and placed in a separate budget line in the EU. This would be in keeping with current treaties while legislatively empowering the EU to tackle the unemployment issue.

- The full paper is available here, courtesy of the Ministry of Economy and Finance.