You are here:
- Newsroom >
- To the Point - January 30, 2012
To the Point - January 30, 2012
30-01-2012 11:18
The full monty: how to build a strong currency union while closing democracy gaps
- The institutions for a strong currency union in Europe are still lacking. To be effective, the EMU needs fiscal cooperation (or union), supranational bank regulation, and a central bank as lender of last resort to banks and sovereigns.
- Euro zone politicians may opt for the less solid “transfer union” approach, using rescue funds instead, but then these funds need to be larger and more flexible.
- The EMU is threatened by “democracy gaps”, which politicians need to address, not least of which how to meet the challenges for young generations.
