Agnès Bénassy-Quéré, 07 September 2015

The problems in the Eurozone are not a side effect of the Global Crisis but rather date back to the Maastricht treaty. This chapter proposes a few possible remedies. First, it is necessary to make debt restructuring possible within the Eurozone. In particular, the risk loop between sovereigns and banks needs to be stopped through more diversified balance sheets. The second suggestion involves more shared sovereignty, not only for debtor countries, but also for creditors. At a minimum, the Eurozone needs a fiscal backstop for its banking union.

George Kopits, 24 December 2013

Germany’s newly established Advisory Council – tasked with monitoring compliance with the constitutionally mandated balanced budget rule – lacks the analytical capacity and independence of its counterparts in the UK, the US, and the Netherlands. It is perhaps by virtue of the current government’s record of fiscal responsibility that a more comprehensive watchdog is not urgently needed, but the newly formed coalition should not miss the opportunity to establish comprehensive fiscal and banking oversight.


CEPR Policy Research