Strengthening the Institutional Underpinnings of the Euro
The Stability and Growth Pact must be reinforced, have greater automaticity and entail graduated sanctions. Fiscal surveillance must be improved through the establishment of a European Fiscal Stability Agency and the European Financial Stability Facility must be made permanent.
These views are put forward by Professor Stefan Gerlach in a new analysis discussing the need to strengthen the institutions underpinning the euro.
The analysis is part of the research project Long-term Effects of the Financial Crisis.