CRISIS AND REFORM OF THE EURO ZONE. WHY DO WE DISAGREE?

There is general agreement that reforms of the euro-zone architecture are necessary, ideally aimed at fostering further integration on the grounds of (at least) economic policy and governance. The narrative of the crisis is decisive. Suspicion runs high and mutual trust runs low between the southern and the northern European euro-zone countries. And neither the northern euro-zone countries nor the southern euro-zone countries can account for the full story of the euro zone’s malaise, not to mention possible ways out. Better rules are not enough, new common institutions are necessary. Reform of the euro zone should be based on a confederal and cooperative model.