It’s time to get the house in order! : how to strengthen the current EMU?

Abstract

In the aftermath of the euro crisis there has been a call for strengthening the capacity of Economic and Monetary Union (EMU) to share risks, prevent and resolve crises, reduce the burden of debts, and strengthen its fiscal dimension. In December 2017, the European Commission proposed transforming the European Stability Mechanism (ESM) into a European Monetary Fund, as well as creating a European Minister of Economy and Finance. At a moment of resurging support for the European Union, when the economic and political conditions for reforming EMU also appear favourable, which reforms should have priority? How, if at all, should ESM be transformed or an EMU fiscal authority created? What is necessary and what can be discarded in the house of EMU?