The editors, CEPR director Richard Baldwin and Francesco Giavazzi of Bocconi University, have asked leading economists to share their insights on solutions that can fix the eurozone before the next crisis strikes the monetary union. This book is the second part within the Rebooting Europe project. Last year, the editors had already asked the same economists on the question: “What caused the eurozone crisis?”
In order to safeguard the future of the eurozone, Wieland and his co-authors present various reform proposals based on the priniciple of the unity between liability and control. Thus, the authors propose to further strengthen the banking union by refining the resolution mechanism and creating an independent European financial supervisor. In their view, the introduction of an insolvency mechanism for sovereigns, the enforcement of existing fiscal rules and the removal of regulatory privileges for sovereign debts are further necessary measures accompanied by structural reforms to be decided on a national level.
VoxEU book „How to fix Europe's monetary union: Views of leading economists“ (PDF)
Contribution of Lars Feld, Christoph Schmidt, Isabel Schnabel and Volker Wieland:
„Maastricht 2.0: Safeguarding the future of the Eurozone“
In September 2015, the VoxEU book "The Eurozone Crisis: A Consensus View of the Causes and a Few Possible Solutions" (overview, PDF) was published with a contribution of Lars Feld, Christoph Schmidt, Isabel Schnabel and Volker Wieland:
„Divergence of liability and control as the source of over-indebtedness and moral hazard in the European Monetary Union”