The FIRSTRUN project consists of the following Work Packages
WP 1: Fiscal policy coordination and cross country spillover effects
WP 1 provides a common conceptual and theoretical framework for all other WPs regarding the various spillover effects that call for policy coordination and the different forms that fiscal coordination can take. This WP also quantifies cross country spillover effects in the EU and EMU countries. Finally, WP 1 summarizes the results from other WPs and draws policy conclusions based on the results in all other research WPs making sure that the conclusions are consistent with each other.
WP 2: Ex ante policy coordination: the new EU fiscal rules
WP 2 analyses the functioning of the new fiscal rules by asking how they would have worked in the past. The work addresses the uncertainty related to fiscal forecasts. It also considers feedback mechanisms such as fiscal multipliers.
WP 3: A fiscal union for the EMU: Why and which one?
This WP considers alternative models of fiscal union for the EMU, which combine different forms of market and fiscal risk sharing mechanisms (e.g. the banking union and eurobonds) and shock absorbers including a European unemployment insurance scheme and a central fiscal capacity.
WP 4: Monetary-fiscal policy mix
WP 4 focuses on the interaction between monetary and fiscal policies from the point of view of macro-stabilization.
WP 5: Fiscal rules and long-term sustainability
WP 5 asks how the national governments should address the issue of long-term fiscal sustainability taking into account population ageing, uncertainty about the future fiscal pressures, and the new EU debt and deficit limits. This WP also addresses the potential spillover effects from structural reforms that aim at improving long-term fiscal sustainability.
WP 6: Governance, institutional mechanisms for fiscal policy coordination and their legitimation
This WP investigates how to assure the legitimacy of the institutional mechanisms for fiscal policy coordination. It develops a new conceptual framework for understanding the practicalities of fiscal coordination and the disciplines it requires of participating governments.
WP 7: Dissemination and Outreach
This WP engages with the relevant stakeholders and the academic community in order to raise awareness about the FIRSTRUN project and its results and to receive comments and suggestions related to our research questions and methods.
WP 8: Scientific coordination and project management
The first objective of WP 8 is to coordinate the research activities of the Consortium, in accordance with the project work plan. This WP also includes the management of the administrative and financial matters and reporting to the Commission.