The political endgame for the euro crisis
Charles A.E. Goodhart, Dirk Schoenmaker 14 December 2011
The euro crisis continues to deepen, as European leaders continue with their ‘too little too late’ policy reforms. This column argues that fixing the Eurozone problems requires a strong direction of fiscal and banking policy, but that this in turn requires deeper political integration including an elected president of the European Commission and a two-chamber parliament representing EU citizens and EU member states.
The euro has a supranational monetary policy framework, while the fiscal side is still national/intergovernmental. We have a central bank president for the Eurozone, but no finance minister. But how could countries possibly cede sovereignty over some aspects of fiscal policy without democratic legitimacy?
European parliament, EZ crisis, EZ political integration