Volker Wieland and Kronberger Kreis present study on "Is the euro fit for the future?"
The European Monetary Union has emerged from the most severe period of inflation in its history. After the inflation rate in the euro area temporarily rose to over 10 percent, it has been back near the European Central Bank’s (ECB) medium-term inflation target of 2 percent since 2024. However, the return to low inflation rates does not necessarily mean that the monetary union is future-proof. Rather, the high inflation of 2021 through 2023 has once again exposed fundamental weaknesses in its institutional framework.
Against this backdrop, the Kronberger Kreis, the academic advisory board of the Market Economy Foundation, is examining whether the European Monetary Union is sufficiently equipped to meet future challenges. The focus is on the ECB’s monetary policy strategy, the rules and institutions of the monetary union, and the prerequisites and limitations of a stronger international role for the euro.