Publication

This paper examines the two main EU proposals for the creation of a European unemployment insurance scheme and the possible trade-offs and challenges this would involve. The first suggests the creation of a harmonized European unemployment benefit scheme that would apply automatically to every eligible unemployed person. The second would transfer funds to national unemployment insurance schemes to finance benefits from the center to the periphery when unemployment is measurably higher than normal. The authors suggest that while both options are viable, the second option would provide greater economic stabilization than the first.