Wednesday, June 1, 2016
Reinforcing the Eurozone and protecting an open society
The sovereign debt and the refugee crises prove that Europe has failed to design institutions robust enough to weather difficult times. The stakes are high: when economic shocks and political crises coincide, the risk of disintegration rises to alarming levels. Coordinated actions are needed, but these are difficult to implement because of the political climate. In short, we may be contemplating the end of Europe as we know it.
Our goal in the 2nd Monitoring the Eurozone report, Reinforcing the Eurozone and Protecting an Open Society, is to propose institutional changes that can help to restore growth and prosperity while being politically feasible (Corsetti et al 2016). Unlike the Five Presidents Report (EU 2015) and other recent proposals, which suggest progressive steps aimed at achieving a closer economic, financial, and political union in the medium/long term, we propose a limited set of measures which can be implemented now without requiring a deepening in political or economic integration for which there is little appetite today. This, of course, does not mean that we do not consider a more ambitious plan desirablε