Euro Crisis and the EMU Institutional Reforms

Main Article Content

Jarosław Kundera

Abstract

The main goal of this article is to find the answer for the question about the necessary reform to be undertaken in the EU to save the euro as a common currency. The author envisages three scenarios of the euro area’s future development. In his opinion, the most probable one are the institutional reforms in the euro area. The essential element of the reform is to establish a proper mix between the ECB’ monetary policy and fiscal policies in the member states. All proposed steps against the euro crisis are mutually correlated: monetary integration requires stricter fiscal integration, fiscal integration requires banking union, but banking union is going to require some form of a political union. This way the debt crisis in the euro area may present an opportunity to renew the strength of the European institutions.

Article Details

How to Cite
Kundera, J. (2013). Euro Crisis and the EMU Institutional Reforms. Equilibrium. Quarterly Journal of Economics and Economic Policy, 8(1), 7-31. https://doi.org/https://doi.org/10.12775/EQUIL.2013.001
Section
Anti-Crisis Policies in the European Union

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