While it garnered support from the French, the central unemployment insurance was quickly knocked down by Germany, which saw it as a fiscal transfer through the back door.

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To avoid it just being a sticking plaster it would have to come with large amounts of fiscal transfer, as suggested on 21 July, in the form a quasi-Marshall Plan (since eurobonds are off the agenda due to the German court ruling).

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Euro-dreamers say a fiscal-transfer union could be built on the legitimacy of the European Parliament.

ECONOMIST: Charlemagne

The UK government says the bill represents the "biggest transfer of fiscal power to Scotland".

BBC: Scotland Bill part one

The UK government says the bill provides for the "biggest transfer of fiscal power to Scotland".

BBC: Scotland Bill part one

The legislation has been described as the largest single transfer of fiscal power from Westminster in the history of the United Kingdom.

BBC: Scotland Bill Committee 1

The bill, which has already cleared the Commons, implements recommendations of the Calman Commission to transfer control over some fiscal policies from Westminster to the Scottish Parliament.

BBC: Scotland Bill part one

Foreign office sources stressed that fiscal integration by eurozone countries would not be seen as a transfer of power from the UK to the EU and so would not trigger a referendum.

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Vague plans for a fiscal union seem to depend on a bargain in which Germany agrees to transfer money to debtor countries but the debtors agree to limits on their ability to run a deficit.

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These included proposals for the transfer from the federal to the regional level of certain aspects of fiscal, labour and healthcare policies, as well as the thorny task of reaching an agreement on the future of the bilingual electoral constituency of Brussels-Halle-Vilvoorde (BHV).

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