There is now a wide agreement that reforms of the architecture of the Eurozone (EZ) are needed, reforms aimed at fostering further integration of economic policy and governance. Behind the plea for "more Europe", divergences loom large across member states. The cleavage is normally represented...

The COVID-19 crisis has the potential to lead to long-term stagnation in the European Monetary Union (EMU). Especially the following challenges can be identified: a lack of labour market institutions can lead to nominal wage cuts and deflation; the lack of a strong fiscal centre can lead to an...

The economic crisis triggered by the COVID–19 pandemic once again raises doubts about the eurozone's ability to deal with joint economic problems given its dissimilar dynamics and asymmetries. This chapter contributes to a paradigm shift in the governance of the euro area towards a more...

The establishment of the banking union was a crucial step for European integration and for the Economic and Monetary Union. Together with stronger capital and liquidity requirements under the European single rulebook, the introduction of the Single Supervisory Mechanism and the Single Resolution...

The 2020–2021 review of the ECB strategy will shape monetary policy in the Eurozone in the years to come. Crucially, it will also determine the scope and capabilities of the ECB within the ever-evolving architecture of the euro. As in the aftermath of the Global Financial Crisis and the...

The economic crisis triggered by the coronavirus exposed the gaps in the European Monetary Union (EMU) governance, creating fears to repeat the sovereign debt crisis. In view of the magnitude of the crisis and the financial interdependence inside that union, strong policy coordination and...

The Global Financial Crisis has diluted the previous consensus on monetary policy. The disconnection of the Interest Rate Policy for macroeconomic management motivated by the permanence of the zero lower bound has forced central banks to make incursions into unexplored terrain. Right at this...

The fiscal governance of the European Economic and Monetary Union (EMU) was the result of a political compromise. This led to an imbalanced and unsustainable framework, which contributed to the outbreak of the Eurozone debt crisis. During the crisis, European leaders embarked on a reform effort...

The economic crisis caused by the COVID-19 pandemic will have a severe and persistent impact in the eurozone countries. Experience has shown that there tends to be an upsurge in inequalities and social exclusion in periods of deep recession, while they are slow to recover in expansion. Social...

The economic crisis associated with the COVID-19 pandemic leads to a substantial potential loss of personal incomes and jobs. European countries have given different answers to the rising challenge, which nevertheless point to the same direction. We give three examples of such courses of action,...