A return to the Deutschmark or a core monetary union would impoverish Europe’s economies. Instead, Eurobonds could offer a viable solution to preserve unity in diversity

An overstretched EU-level monetary policy and differences in real interest rates within the Eurozone have led to a vicious circle of asset bubbles in some Eurozone countries and slow growth in others. The introduction of Eurobonds, together with fiscal innovation at the member state level, can help to ensure income convergence with stability, argue Anke Hassel and Waltraud Schelkle