Thursday, July 23, 2015
In a new Notre Europe publication, titled After the Greek Deal: Three Dangers and Three Oportunities – Why it is Urgent to Complete EMU, Jacques Delors, Pascal Lamy, António Vitorino and Henrik Enderlein and Gerhard Cromme identify the risks of complacency, the start of a blame game, and of “fiddling about” in the absence of a long-term strategy and a political vision of the EMU. Yet they also pinpoint that the upcoming agreement could also prove to be a basis for intelligent reforms that push to revisit European fiscal policy, and to reinforce investment and integration. The authors call for greater Franco-German cooperation in order to finally realize the historic goal of completing the EMU.Instead, they have every incentive to demonstrate the success of their “tough love” policies by easing austerity to accelerate economic growth, not only in Greece but throughout the eurozone. Kaletsky holds the view that the upcoming agreement "may be remembered as the culmination of a long series of political compromises that, by correcting some of the euro’s worst design flaws, created the conditions for a European economic recovery." Kaletsky concludes that "the main conditions now seem to be in place for a sustainable recovery in Greece, so the near-universal belief today that it faces permanent depression is no reason to despair."
