How to embed the Eurozone in a political union
de Grauwe, P.
(2010).
How to embed the Eurozone in a political union.
VoxEU,
(2010).
How to embed the Eurozone in a political union.
VoxEU,
The Eurozone lacks the mechanisms needed to ensure convergence of members’ competitive positions and to resolve crises. This essay argues that the survival of the Eurozone depends on its capacity to embed itself into a political union. The latter must imply some transfer of sovereignty in macroeconomic policies and the organisation of automatic solidarity between member states.