The debate on the euro crisis understandably has had a strong short-term focus. Avoiding short-term disaster has been tantamount and the long-term sustainability issue sometimes neglected; yet, the institutional failure of the euro area forces us to reconsider current arrangements in order to restore credibility and sustainability. The article discusses various paths for the reform of the overall governance, from fiscal management to banking regulation, through the recent proposals to mutualise and repackage part of the sovereign debts into a supranational one or to introduce joint-and-several liability.
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