Although the media attention for the Euro crisis is currently less prominent than a few years ago, the situation has not changed and the problem is still there.
In its essence the problem of the Euro is the result of a strong political idealism that clearly disregarded economic and cultural realities. Any solution towards a stable Eurozone or any single-currency zone should take the economic reality as the starting point.
The ECPM Election Manifesto states:
Temporal reductions of debts, primary budget surpluses and fragile economic growth cannot hide or take away the fact that a number of economies in the Eurozone cannot converge. The cultural and connected economic differences can no longer be ignored. The policy with regard to the euro has to become far less ideological and much more practical.
Once again, the European Institutions need to understand that you cannot apply a one-size-fits-all approach to EU Member States. Instead, the European Institutions should recognize the many differences between Member States and take this as the starting point to facilitate effective collaboration. This is not a eurosceptic approach, it is a eurorealistic approach. We do not want to go back to the past, but we favour a realistic and sustainable future of collaboration and, when beneficial for all stakeholders, further economic integration.
Yet, for now we need to be realistic and admit that a blinkered political idealism has gotten us into a situation that we have to deal with. For the short term ECPM suggests the following:
The ECPM does not back the idea that the EU and the Eurozone should become identical in the long run. Before a new crisis will emerge an honest debate is necessary to determine which Eurozone economies have long term potential to converge. For those economies who do not have these prospects a new path to prosperity has to be designed. In order to keep the EU democracy and economy sustainable and to avoid a repetition of the grim human costs, a slow and careful reset of the Eurozone is necessary.
For more information about the Euro and our vision you can order the publication “the future of the euro” of our research foundation at: http://www.ecpf.info/thefutureoftheeuro