The crisis has radically transformed the economic and political landscape. Europe has been divided into creditors and debtors, into eurozone countries and all the others. The divisions are deep even within countries, as inequalities are rapidly increasing.
Nationalism is on the rise, and populism is having a field day. Trust is lacking, the economic strategy remains problematic, and Europe looks to the future unprepared, making its prayer. As things stand today, euro governance is neither effective nor legitimate.
Stronger common institutions are needed, greater democratic oversight, and an executive power that will have discretion in decision-making. Europe needs a new grand bargain built on a broad coalition of countries and key political parties.
Structural changes and fiscal consolidation must be accompanied by measures that will boost growth while addressing the needs of those who are losing out in a time of great economic change. If we continue to move forward haltingly and with half-measures, Europe will remain weak, divided, and inward-looking: a continent in decline, with an ever-shrinking role in a rapidly changing world, with an extremely unstable and impoverished neighborhood.
This book combines scientific analysis with political intervention. It is being published simultaneously in six languages by major European institutions and think tanks at a particularly critical turning point for Europe.
