Motivated by the recent proliferation of fiscal consolidation episodes in the advent of Monetary Union, this book explains the causes and consequences of fiscal policy in Europe. This book answers three related questions: What explains the timing of fiscal adjustments? What explains their different duration and composition? What are the economic and political consequences of having implemented different adjustment strategies?

Motivated by the proliferation of fiscal consolidation episodes in the advent of Monetary Union, this book explains the causes and consequences of fiscal policy in Europe, using theory and empirical evidence from the last four decades.