The article explores how fiscal policy affects the Euro Area economy and its relationship with monetary policy. It shows that fiscal policies in the Euro Area react similarly to common shocks, even without a formal fiscal union. The study finds that spending-oriented fiscal policies are more effective in boosting output in the Euro Area, while tax reductions are more effective in the US. The interaction between fiscal and monetary policies varies depending on the type of shock, with fiscal multipliers changing over time. Overall, the Euro Area's monetary-fiscal interactions differ significantly from those in the US.