Recent events affecting the monetary stability of the euro area have revealed deep misunderstandings between the French and the Germans. France argues that political considerations must prevail over European subjects, while Germany defended at all costs the principle of monetary stability. This text sheds a new light on these monetary and financial issues. Its author, Wolfgang Glomb, member of the Franco-German Council of Economic Analysis and Chairman of the Association of German Economists’ “European Integration” working group, analyzes the history of the Economic and Monetary Union in view of the different visions the French and Germans promote and of the compromises that have resulted. While the Eurozone is going through an unprecedented crisis, Wolfgang Glomb proposes to strengthen the binding character of the Stability and Growth Pact. The changes he advocates would include automatic sanctions and the possibility of state bankruptcy. In such conditions, European countries which would then be subject to market pressure and show more discipline.
33 pages| February 2011 | ISBN : 978-2-917613-88-7