Nearly every day, international rating agencies downgrade the credit rating of countries such as Greece, Portugal, Ireland, and now even the founding member Italy. The Greek debt default is discussed openly. European politics is reacting hectically. New rescue parachutes and rescue mechanisms are released nearly on a weekly basis. In search of solutions, another special summit of the heads of state and government of the European Union may take place soon.
But what are the fundamental questions of the crisis? What mechanisms and structures could lead the euro area and the EU sustainably back to a crisis-proof path? Five renowned European political and economic scientists respond to these questions in the latest edition of ”Europe in Dialogue”.
The authors of the book are Iain Begg of the London School of Economics, Ansgar Belke, research director for international macroeconomics at the German Institute for Economic Research (DIW Berlin), Sebastian Dullien, professor for international economics at the University of Applied Sciences, HTW Berlin, Daniela Schwarzer of the German Institute for International and Security Affairs (Stiftung Wissenschaft und Politik (SWP)), and Ramunas Vilipisauskas of Vilnius University. None of the authors believe in the sustainability of short-term rescue parachutes. The euro zone must create new structures and institutions in order to be prepared for crises in the long-term. The suggestions of the authors reach from a regular far-reaching ‘MOT’ for all member states and comprehensive supervisory rights of the EU about the financial situation of member states, to an extension of automatic stabilization and prevention mechanisms.
The authors agree that the implementation of effective measures will require an enormous effort on the part of politicians. The last two years have shown how difficult it is to find a common denominator for the interests of all member states in the large EU. However, the common interest in the survival of the euro, the stability of the European Union and positive growth opportunities should be in the foreground in all countries. We want to contribute to the necessary discussions with this book.
Armando Garcia SCHMIDT
Project Manager
Program Europe’s Future