The ongoing European integration together with global economic integration has caused apprehension in the public that national governments are losing their independence in economic policy. Especially, increased capital mobility is assumed to restrain the tax setting behavior of a national government – in the end constraining the scope and shape of government spending on public infrastructure, social services and other matters. By examining specific fiscal topics related to the current debate on economic integration, this book highlights aspects of the broader framework of fiscal competition. It develops further insight into the interaction of economic integration and public policy showing the scope and limits of national fiscal policy in an era of ongoing economic integration.
