Nobel Prize winners and Corresponding Members of the Real Academia de Ciencias Económicas y Financieras of Spain (RACEF) Finn E. Kydland and Eric Maskin have suggested to the European Union that a single authority should regulate the fiscal and budgetary policies of member states, as occurs with the monetary policies. Kydland and Maskin made these statements at the International Congress Salamanca Social Sciences Festival (S3F) which was held between the 6th and the 9th of October.

Maskin added in his speech that an economic recession, is “always, absolutely always, the failure of the Government”. To reduce public spending – he added – prejudices economic recovery and leads to an increase in unemployment, which in turn can lead to greater financial strangulation.