Report: Eurovision – An Unbalanced Road Map for the Economic and Monetary Union

The European Council’s meeting of 13-14 December 2012 has been convened to define a master […]

Policy Brief

09/10/2014

The European Council’s meeting of 13-14 December 2012 has been convened to define a master plan and a road map to complete the EMU. The European Council seems finally to understand that it is not possible for the EU to re-launch growth and to reduce the public debt in a consistent way if the euro-zone crisis is not tackled by urgent reforms in the Economic and Monetary Union.

As long as the European banking system is fragmented and there is a credit shortage in most of  European Member States, companies cannot invest and create jobs, particularly in the activities of the future. That is why a banking union is needed with deposit guarantees and with resolution instruments to restore the normal circulation of capitals and to restructure banks in distress. In order to break the link between bank debt and sovereign debt –which is at the core of the euro-zone crisis; these instruments should not create more burden for the public budgets and tax payers.

As long as the interest rate to be paid by public debt service is higher than the growth rate it is difficult for Member States to reduce consistently the public debt/GDP ratio, except by deep cuts in the welfare systems. That is why a European budgetary union is needed, coupling fiscal discipline with European instruments to bring down the costs of public debt issuance. Without these stronger instruments to reduce the divergences between Member States regarding the costs of investment and of public debt issuance, many Member States will be pushed for a long and deep recession which might then drag other EU Member States, leading to a more general recession and crisis of the European integration.

The discussions in the European Council were based not only on the draft conclusions but also on the report on Towards a Genuine EMU, prepared by the four Presidents (European Council, European Central Bank, Eurogroup and European Commission). This last institution has also recently presented  a bolder than usual report Blue Print for a Deeper and Genuine EMU”, with detailed proposals for each stage and a clear identification of those requiring Treaty changes.

Find all related publications
Publications
28/02/2025

Political parties in the EU and the challenges of EU enlargement

Balkan Focus Series
28/02/2025

Moving towards an inclusive green agenda in the Western Balkans

Balkan Focus Series
29/01/2025

Progressive Yearbook 2025

2024 was announced as a ‘super election’ year. In fact, about half of the world’s […]
13/12/2024

The great countdown

A guide on how to arrive prepared for the European elections 2029
Find all related Progressive Post
Progressive Post
08/05/2025

The European miracle

Why Europe's future is built on the ruins of the past – and what is at stake today
24/04/2025

The EU’s failing test in Bosnia and Herzegovina

The ongoing constitutional coup in Bosnia and Herzegovina – engineered by the pro-Russian separatist leader […]
30/01/2025

How the new Commission should improve the rule of law report

In her mission letter, Commission President Ursula von der Leyen has tasked the Executive Vice-President […]
Find all related events
Events
Upcoming
19 - 21/06/2025
Siena, Italy

Siena Vision Conference on the Europe of the Future – 2025

Time to be bold
Past
19 - 21/06/2025
Siena, Italy

Siena Vision Conference on the Europe of the Future – 2025

Time to be bold
15 - 16/05/2025
Ljubljana, Slovenia (Expert meeting)

Friends of the Western Balkans – Ljubljana

The implication of the Serbian students’ protests for Serbia and enlargement
Find all related news
News
16/05/2025

Joint statement by the Friends of the Western Balkans (FoWB)

Ljubljana, 16th May 2025 We, the Friends of the Western Balkans (FoWB) – representatives of […]
27/02/2025

European roundtable of Progressive think tanks

The European progressive way in the face of Trump's and the far-right agenda
25/02/2025

New grand coalition in Germany with historic tasks

Commentary by FEPS Secretary General László Andor on the German elections
29/01/2025

Lithuanian Prime Minister Gintautas Paluckas awarded FEPS ‘Progressive Person of the Year’

FEPS Progressive Person of the Year 2024-2025
Find all related in the media
In the media

Evropske socijaldemokrate traže od institucija Unije da razmotre pojedinačne sankcije protiv onih koji krše ljudska prava u Srbiji

by nova.rs 21/05/2025
The Friends of the Western Balkans 7th meeting and political statement on the Serbian student protests is discussed in this article.

Nem jó, hogy Magyarországon a szélsőjobb és a jobboldal versenyez

by Hírklikk 12/05/2025
“It's not good that the far-right and the right are competing in Hungary” Interview with FEPS Secretary General László Andor on KlikkTV (HU), featured in Hírklikk, discussing the rise of the far right in Hungary and the need for stronger progressive alternatives.

Rozdíly mnohým vyhovovaly

by A2 05/05/2025
"The differences suited many" In this article, László Andor, FEPS Secretary General, discusses the different challenges the European Union is currently facing.

Orbán’s stance on Ukraine pushes Hungary to brink in EU relations

by The Guardian 22/04/2025
News article by The Guardian (UK) quoting FEPS Secretary General László Andor, who highlights how Hungary’s obstructive stance on Ukraine is undermining vital EU unity and fuelling tensions among member states.