The euro area reform deal is a disappointing compromise. It does not advance Europe; rather, this deal reveals that apparently, another serious crisis must occur before governments will abandon their national egotisms. The lowest common denominator in the negotiations was so low that little is likely to change. The compromise regarding the banking union is so vague I doubt it will be realistic to implement it soon. Agreements on the capital market union and to advance integration in the internal … [continue reading]Read more
Fourteen economists from France and Germany are presenting a reform package aimed at making the euro area more robust and more resilient to crises as well as allow for sound public finances and stronger economic growth.
Find the joint press release of the German Institute for Economic Research (DIW Berlin) and ifo Institute – Leibniz Institute for Economic Research at the University of Munich including the paper Reconciling risk sharing with market discipline: A constructive approach to euro area reform… [continue reading]Read more
Why we need more European integration to prevent further crises. Eleven German economists, lawyers and political scientists – the Glienicker Group – make suggestions.
Crisis, what crisis? If public sentiment in Germany is anything to go by, there is little reason to worry about Europe. The period when it was feared that the euro might collapse seems a long time ago. Financial markets have calmed down. The design flaws of the monetary union seem to have been papered over, and … [continue reading]Read more