An unprecedented crisis has recently hit Greece and other countries of the Eurozone, thus raising the question of the functioning of the single currency. 10 years after its introduction, the assumption that monetary union would automatically bring convergence does not appear to be fully confirmed by data. Indeed, macroeconomic imbalances can be seen in a number of countries and national misbehaviours are jeopardising the entire Eurozone.

Political union seems to be a first-best solution to let the Euro work at full speed. Unfortunately, it is not a viable option in today’s Europe. Thus, the Policy Brief lists five concrete measures which would help avoid similar crises in the future. These measures imply a reformed Stability and Growth Pact, better surveillance, mechanisms delivering orderly defaults, the introduction of an expulsion clause and the strengthening of the Eurozone external dimension.