What is a eurozone budget?

The "Eurozone Budget" is a common European budget for countries in the eurozone, intended to absorb economic shocks in the economies of the euro countries. Since countries in the euro can no longer pursue an independent monetary policy that suits their specific situation, a eurozone budget offers the possibility to support countries that fall into a sudden deep recession, which can prevent unemployment.

Although the eurozone budget does not yet exist, it is being proposed by the European Parliament and French President Emmanuel Macron, among others, as a means to strengthen the eurozone and prevent a new euro crisis. In 2019, a first step in this direction was taken with the European Budgetary Instrument for Convergence and Competitiveness (BICC).