Progressive reforms for rebalancing the Eurozone

–  by Manuel de la Rocha Vàzquez (Fundación Alternativas), David Rinaldi (FEPS) and Victor Echevarría (Instituto Complutense de Estudios Internacionales)-

Almost two decades after the launching of the Economic and Monetary Union, one has to admit that the results in terms of in terms of convergence, sustainable growth, social progress, cohesion and  stability have been quite disappointing. Flaws in the initial design of the single currency have made  the effects of the global economic crisis deeper and longer, generating huge economic costs, social suffering and political tensions within and between member states.  Those effects, coupled with the impact of globalisation, technological change and migration flows
have generated a huge discontent among many European citizens, who feel the costs of the crisis has  been unfairly distributed. Such feelings have indeed largely contributed to the emerging of populist, xenophobic and anti-European forces throughout the continent, exacerbating political and social tensions and putting the EU itself into question. The result of the Brexit referendum has shaken the EU at its core and it calls for a political response that addresses not only institutional flaws, but also  the democratic deficit and social imbalances. Against this background, completing, deepening and rebalancing the Economic and Monetary Union is perhaps the most crucial point of the dense  European policy agenda, as it is essential to reforming the European framework for attaining robust long-term growth, socio-economic convergence and political unity in Europe. (….)