That the EU needs a new treaty is clear from two strands of evidence: the data showing a marked slowdown in EU decision-making since the May 2004 enlargement, and evidence based on ‘revealed preference’ reasoning.
Charles Wyplosz, 10 June 2004
Written in June 2003: EU Commissioner Pedro Solbes announced that aspiring Eurozone members must keep their exchange rates within the old, narrow ERM band. If EU Finance Ministers agree, this is very bad news, raising the possibility of exchange rate crises. It is in the EU’s common interest to recognise that the new members are different; they should be given two options: early euro-isation or the Swedish-type oblivion of the wide-band ERM.
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