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 Study


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

Sustainable Digital Market Design: A data-based approach to the circular economy

Markets must be designed properly to serve the common good. This is particularly evident in […]

Talking Green in Europe

Lessons on re-framing the public debate on the climate crisis

Just Transition & Revitalisation – A New EU Strategy for Rural Areas

How can EU actions support the revitalisation of rural areas? How can EU institutions put […]

Voting during pandemics: making democracy resilient in turbulent times

Although many volumes have already discussed several COVID-related socio-economic phenomena, relatively less attention has been […]
Find all related news

Ahead of this week’s European Council, progressive MEPs and MPs urge EU leaders to take resolute actions toward the Western Balkans

On 17 and 18 June, the ‘Friends of the Western Balkans’, the newly established network […]

First meeting of the Friends of the Western Balkans

How do we get out of the dead end in the enlargement process?

FEPS launches a new website!

After months of work, FEPS’s new website is now online!  This new website offers a […]

FEPS holds the 2022 General Assembly

This week, FEPS held the 2022 General Assembly (GA), the yearly meeting gathering all members […]
Find all related in the media
In the media

Leaders Must Choose a Just Energy Transition and a Social Europe

by Euractiv 30/05/2022

The circular economy and green jobs

by ENCOMPASS 25/05/2022

Da Prodi a Rodrigues, domani al via la ’Terza conferenza sul futuro dell’Europa’

by La Nazione 25/05/2022

Visioni e strategie per disegnare il futuro europeo 

by La Nazione 23/05/2022