Fiscal federalism: Eurozone Budget and Its Stabilization function

The main goal of this thesis is to design Eurozone budget that would be able to perform stabilization function and thereby help Eurozone member states overcome temporary asymmetric shocks in times of financial and economic crisis. The literature review includes description of principle of fiscal federalism and up-to-date scientific articles dedicated to stabilization function of a budget, European budgetary structures and other issues relevant for the Eurozone budget design. The practical part contains concrete steps to design Eurozone budget, namely identification of its size and also description and quantification of individual revenues and expenditures of the Eurozone budget. Eurozone unemployment scheme consisting of Eurozone payroll tax and unemployment benefits repre-sents autonomous and the most important part of the budget. Eurozone budget is then commented and analyzed as a whole in recommendations and discussion and a few important topics of further research are identified in the conclusion of this thesis