The new Commission should shift gears. Rather than spending ever more political capital on ever smaller technical reform steps, it should focus on fostering a political consensus on the future direction of Eurozone reform. In parallel, it should ensure that the Eurozone is prepared for the next crisis, which might just be around the corner. This means first to bring the current reform package including a mini-Eurozone budget over the finish line; second to make Banking Union work properly; and third to prepare a playbook for a joint fiscal response in a future recession.
This series is a cooperation between the Jacques Delors Institutes in Berlin and Paris and makes concrete proposals for the EU’s next institutional cycle. The views expressed are those of the author(s) and do not necessarily reflect those of the publisher.