The Managing Editors of Economic Policy : Tullio Jappelli is CSEF Director and Professor of Economics at the University of Naples Federico II. Philip Lane is Professor of International Macroeconomics at Trinity College Dublin. Philippe Martin is Professor at the Universite Paris-1 Pantheon Sorbonne and CERASENPC and a Research Fellow at CEPR. Jan van Ours is Professor of Economics at Tilburg University and Professorial Fellow at Melbourne University. The Senior Editors of Economic Policy : Georges de Menil works at the Delta Ens, France. Richard Portes lectures in the Department of Economics, London Business School. Hans-Werner Sinn is based at the Centre for Economic Studies, University of Munich.

• Editors Introduction 371 Fiscal union in Europe? Redistributive and stabilizing effects of a European tax-benefit system and fiscal equalization mechanism 375 Olivier Bargain, Mathias Dolls, Clemens Fuest, Dirk Neumann, Andreas Peichl, Nico Pestel and Sebastian Siegloch Bank lending and monetary transmission in the euro area 423 Roberto A. De Santis and Paolo Surico Heterogeneous transmission mechanism: monetary policy and financial fragility in the eurozone 459 Matteo Ciccarelli, Angela Maddaloni and Jose-Luis Peydro The Greek debt restructuring: an autopsy 513 Jeromin Zettelmeyer, Christoph Trebesch and Mitu Gulati