Economic and Monetary Union

What if... the Eurozone became a real transfer union to reduce economic inequality and increasing social unrest between and within Member States? Read our last post on the Reconnecting Europe blog and find more topics that shaped the EU in 2018.

The tectonic plaques of the eurozone are again on the move. The rise of populism and the extreme-right is not the beginning but rather the result of a long process of political flaws and errors. The Italian national budget proposal oposes the Italian government and the European Commission. But it is not about pro or contra the EU but about delayed and short-term reforms in the fiscal governance. 

After 21 consecutive quarters of positive evolution of the eurozone, one might think that the euro crisis is permanently over. But the eurozone has been playing with fire for too long. It has imposed policies with large economic and social costs, while ignoring fundamental and long lasting weaknesses in the design of the euro architecture. 

Since the financial crisis erupted in 2008 the need for a Eurozone reform became obvious. The article discusses the creation of a European Monetary Fund (EMF) or the deepening of the Banking Union as possible solutions.

The outcome of the Italian election is another wake-up call. Former centre-left and socialist voters now are being caught by 'modern' populist parties who claim to defend citizens' rights and fight against a corrupt political class as well as social and economic injustice.

Will the Greek crisis return? Will Tsipras be able to stave it off? The road to national dignity is paved with good intentions and even better proclamations.