CEPS Activities. Review 2011 – Preview 2012
CEPS Activities. Review 2011 – Preview 2012

Author(s): H. Onno Ruding, Karel Lannoo, Daniel Gros, Staffan Jerneck
Subject(s): Supranational / Global Economy, Energy and Environmental Studies, Governance, Economic policy, Environmental and Energy policy, International relations/trade, Economic development, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Published by: CEPS Centre for European Policy Studies
Keywords: Financial crisis; Euro crisis; Economic and Monetary Union; fiscal policy; macroeconomic policy; social policy; energy; climate change; environmental policy; economic development;
Summary/Abstract: The prevailing financial or euro crisis is a reflection of inadequate fiscal policies in combination with a lack of competitiveness in several member countries of the eurozone. Whatever its causes, however, it has exposed fundamental weaknesses in the design of EMU as well as insufficient implementation of the rules governing the euro area. After all, EMU stands for Economic and Monetary Union. These deficiencies had been signalled earlier in the 1990s, but they have been ignored since then by many politicians and financial markets as well. At this moment, it is still unclear whether the euro-area members are able and willing to resolve this crisis by taking the necessary and far-reaching decisions towards a much higher degree of integration. Such moves would go beyond a ’fiscal union’ and would necessarily cover essential elements of macroeconomic policies as well.

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