Abstract
EMU is in crisis. Yet, there is a firm willingness among policy makers to do whatever it takes to restore trust in the euro. Over the past two years, new EU institutions were introduced, the governance and supervisory framework was overhauled, and a new intergovernmental treaty was signed. Also at the national level, there appears to be a broader understanding of the need for bank restructuring, ambitious fiscal adjustments, and deep structural reforms. Still, the challenges that need to be addressed to restore EMU stability are manifold and formidable. While the transition process is difficult and will take time, the ‘old’ EMU is changing into a ‘new’ EMU at a pace which a few years ago would have been unthinkable.
The views expressed in this paper are those of the authors and should not be reported as representing the views of the ECB. The paper reflects data and information available up to mid-June 2012.
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Notes
- 1.
Compare with the Hartz IV labour market reforms in Germany that over time supported a steady decline in unemployment.
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Mongelli, F.P., van Riet, A. (2013). EMU in Crisis: What’s Next?. In: Paganetto, L. (eds) Public Debt, Global Governance and Economic Dynamism. Springer, Milano. https://doi.org/10.1007/978-88-470-5331-1_14
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DOI: https://doi.org/10.1007/978-88-470-5331-1_14
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