Eurozone governance was for long a name without a game. The crisis, however, has brought much-needed clarity. Discussions are now focusing on three areas: strengthening of budgetary discipline; surveillance of the eurozone countries’ competitiveness; and provisions for crisis management.
This is a sensible agenda. The failure of surveillance over the past 10 years needs to be remedied because, in spite of multiple procedures, it was markets, not peer pressure, that in the end forced adjustments. The system needs to be rebalanced because the exclusive focus on public accounts distracted attention from bubbles in the private economy. It also needs to be complemented, because the belief that crisis prevention made crisis management superfluous was proved wrong by events.
For more: FT.com / Comment / Opinion - Towards a system to secure the euro
No comments:
Post a Comment