Introduction Fiscal Federalism in the European Union: How Far Are We?; R.H.Alves and O.Afonso Is there Compatibility between the Stability and Growth Pact and Automatic Fiscal Stabilisers?; S.Rostaing-Paris Stabilization Capacity and Fiscal Policy in EMU; J.U.González and M.J.A.Fernández Fiscal Adjustment and Composition of Public Expenditures in EMU; J.Ferreiro, M.T.García-del-Valle and C.Gómez Public Capital and Economic Growth: An Empirical Spurious Link?; G.Poilon Has France Become a Deficit Running Country?; J.Creel, G.Gilbert and T.Madiès How to Deal with Economic Divergences in EMU?; C.Mathieu and H.Sterdyniak A Scheme to Coordinate Monetary and Fiscal Policies in the Euro Area; C.Panico and M.V.Suárez