Is the Eurozone Stormproof? On Deepening and Strengthening the EMU

Since the euro crisis of 2010-2012 the economic differences between the countries in the eurozone have only grown larger. In response to the financial and economic crisis, significant steps have been taken in recent years to strengthen the Economic and Monetary Union (EMU). Nevertheless, the AIV believes that the measures taken to date are insufficient to equip the eurozone to withstand a new crisis.

• In a number of eurozone countries government debt is untenably high, while non-performing loans worth a huge amount still pose an existential threat for banks.
• The EMU’s ability to act swiftly and effectively in times of crisis is still open to question. The large number of actors without a clear division of tasks and responsibilities is complicating and slowing down decision-making.
• There are delays in the implementation of measures that have already been agreed, such as the completion of the banking union and capital markets union.