 EMU as a Sustainable Currency AreaAnnette Bongardt and Francisco Torres () A chapter in The Euro and the Crisis, 2017, pp 17-32 from Springer Abstract: Abstract EMU’s governance framework was incomplete at its inception. Its institutional fragilities allowed for the building up of competitiveness and fiscal disequilibria in some Member States during its first 10 years and left the Eurozone unprepared to cope with the sovereign debt crisis. While some of those weaknesses have been addressed in response to the crisis EMU’s governance framework remains incomplete to date and therefore vulnerable to adverse market and political-economy pressures. This chapter argues that EMU—or at least the membership of individual countries—will not be sustainable without national adjustment capacity and willingness to implement economic reforms. Those reforms are also a pre-condition for promoting sustainable growth and hence a credible crisis exit strategy. Although EMU’s resilience could still be guaranteed through other mechanisms in the absence of sufficient national adjustment capacity, notably a banking union with an orderly state bankruptcy regime, even if feasible it would mean a rather different model of European integration. Keywords: EMU governance; Economic; Fiscal; Financial and political integration; Sustainable growth (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:fimchp:978-3-319-45710-9_3 Ordering information: This item can be ordered from DOI: 10.1007/978-3-319-45710-9_3 Access Statistics for this chapter More chapters in Financial and Monetary Policy Studies from Springer |
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