Risk

  • Embroiled with the Greek crisis, European policymakers will soon have to step back and reflect on the broader question of the future of the Eurozone. Before calling for an exit or, on the contrary, for further integration, it is worth pondering over the consequences of each option.

    Oversimplifying, one could say that there are two strategies for managing the Eurozone: the current one which builds on the 1992 Maastricht treaty and its Fiscal Compact update in 2012; and a more ambitious federalist alternative. Federalism would be my preferred arrangement, but I am not convinced Europeans are ready to do what it takes to make it work.

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