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
29/11/2023

Social Europe: From vision to vigour

FEPS Primer series - Björn Hacker
13/11/2023

EU Treaties – Why they need targeted changes

An approach based on European public goods, citizenship and democracy
24/08/2023

Montenegro’s political transition. From Djukanović to where?

Balkan Focus policy brief series
24/08/2023

Embracing the Western Balkan countries’ EU accession process. A vital question mark of the EU

Balkan Focus policy brief series
Find all related events
Events
Past
30/11/2023
FEPS HQ (Expert meeting)

Living up to, not leaving aside

The Progressive Strategy towards the elections 2024
23 - 25/11/2023
Sarajevo, Bosnia and Herzegovina (Expert meeting)

The path to 2030 for Bosnia-Herzegovina and the region: Credibility and criticalities

Friends of the Western Balkans's meeting
10/11/2023
Málaga, Spain (Expert meeting)

Leading, not leaning

The ways PES can be a pioneer in the sphere of transnational politcs in 2024 and beyond
Find all related news
News
04/10/2023

The EU at the time of the New Cold War

A manifesto signed by FEPS President and FEPS Secretary General
29/06/2023

Friends of the Western Balkans’ statement

Thessaloniki, 24 June 2023 We, the network of the Friends of the Western Balkans, representatives […]
30/05/2023

FEPS renews its support to ULB students’ magazine Eyes on Europe

FEPS is proud to renew its collaboration with the ULB student non-profit association “Eyes on Europe“ at […]
01/12/2022

Progressive MPs and MEPs advocate for the fulfilment of the promise made in Thessaloniki to the Western Balkans

Open letter to the European leaders ahead of the EU - Western Balkans Summit
Find all related in the media
In the media

Total honesty and far-right lies

by IPS Journal 04/12/2023
Dive into the insightful analysis published in IPS Journal by Tom Theuns, Assist. Prof at Leiden University, and László Andor, FEPS Secretary General, examining the Dutch election results and the conclusions that need to be drawn for a successful EU Integration

Um conclave pelo futuro da Europa

by Diario de Noticias 27/11/2023
Maria João Rodrigues participated in the 'Conclave' on the future of Europe. A transdisciplinary forum that discussed the essential questions to be asked and the answers to be given to European leaders.

Une réforme de l’UE qui intéressera forcément les Suisses

by Le Temps 24/11/2023
'EU reform bound to be of interest to the Swiss', an opinion piece in Le Temps on EU Treaties changes by Maria João Rodrigues, FEPS President, Guillaume Klossa, Director of think tank EuropaNova and Daniela Schwarzer, Executive board member Bertelsmann Stiftung

« Le moment est venu de lancer un débat sur la réforme de l’Union européenne »

by Le Monde 22/11/2023
'The time has come to launch a debate on the reform of the European Union', an opinion piece in Le Monde on Eu Treaties changes by Maria João Rodrigues, FEPS President, Guillaume Klossa, Director of think tank EuropaNova and Daniela Schwarzer, Executive board member Bertelsmann Stiftung