Fiscal friendship

Pushing the Euro Zone Closer Together

Protest labor reform italy
Protesters in Rome come out against labor reform.
  • Why it matters

    Why it matters

    Debate about the euro zone’s future structure is raging, as it will dictate the roles the European Union and the individual states play in determining economic and monetary policy.

  • Facts


    • The E.U. Commission and its newly-installed president, Jean-Claude Juncker, aim to make the monetary union stronger, according to a working paper obtained by Handelsblatt.
    • The German Council of Economic Experts, which advises the German government, favors more national responsibility for financial policy.
    • The E.U. reform package is scheduled to be announced in fall 2015.
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The European Union’s executive branch would like to push the monetary union of the euro zone even further ahead – according to a draft of the new European Commission’s working paper obtained by Handelsblatt.

It announces “a package to strengthen monetary union” for the third quarter of 2015, and proposes creating a new central steering mechanism for essential structural reforms in the states that use the common euro currency.

Commission president, Jean-Claude Juncker, had already given a rough idea what this could look like in his inaugural speech to the European Parliament in July. He indicated that governments would have to be “encouraged” to make structural reforms and “if necessary, with additional financial incentives and a targeted fiscal capacity on the euro-zone level.”

Germany’s chancellor, Angela Merkel, voiced similar ideas a few weeks ago.

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