The messy rebuilding of Europe
AbstractThe euro crisis and subsequent policy responses have challenged the assumptions underpinning the governance of the euro area, and the relationship between the European Unionâ??s euro- and non-euro countries. The euro policy regime has become increasingly complex and difficult to manage, raising the question of the accountability of decision making to citizens. Complexity also threatens to create frustration for euro area members, which fear that initiatives to strengthen the euro will be hindered, and for non-euro members, which fear that they will be de-facto deprived of their say in decisions of major relevance to them. It is too early to determine if and how policy integration within the euro area will develop beyond its current limited monetary and budgetary remit. Alternative scenarios can be envisaged, from the building of a coherent euro area within the EU, to a fragmentation of the financial market and a generalised â??variable geometryâ??. Policy action should be based on the need to: Make room for deeper integration within the euro area, beyond the limited remit envisaged in the Lisbon treaty Preserve the integrity of the EU27 and its essential governance arrangementsEnsure equal treatment in the application of common rules Ensure that candidates for euro-area membership have a voice in the definition of its rules Balance the requirements of legal clarity, accountability and efficiency with the desirability of experimentation through variable geometry This paper was presented to the Economic and Financial Affairs Ministers of the European Union on 30 March 2012 in Copenhagen.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Bruegel in its series Policy Briefs with number 719.
Date of creation: Mar 2012
Date of revision:
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mario Tonveronachi & Elisabetta Montanaro, 2012. "Financial re-regulation at a crossroads: How the European experience strengthens the case for a radical reform built on Minsky’s approach," PSL Quarterly Review, Economia civile, vol. 65(263), pages 335-383.
- Carlo D'Ippoliti, 2012. "Josef Steindl: Introduzione: sulle cause reali della crisi finanziaria (Introduction: on the real causes of the financial crisis)," Moneta e Credito, Economia civile, vol. 65(260), pages 279-292.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bruegel).
If references are entirely missing, you can add them using this form.