Even though the euro zone's problems play a less prominent role on the EU’s agenda in view of the Union's many crises in recent years, new disturbances may lead to the euro crisis quickly flaring up again. The Union is at a crossroads and may evolve in several different directions.

The extent to which low-wage trade competition in the service sector with posted workers should be allowed in the EU has been a hot issue recently. In Sweden, the so-called Vaxholm conflict has become the symbol for this debate.

Lars Calmfors discusses how the strength of various arguments for and against a EMU membership has changed over time. From a Swedish utility perspective, there are more arguments for joining today compared to ten years ago.

Flexicurity has become a popular concept and is associated with a modern labour market policy. The author discusses the dangers of using such a vague concept as flexicurity and identifies four potential problems.

In 2005 the stability pact of the EU was reformed. The revision followed upon violations of the EU fiscal rules by several countries and the breakdown of the pact’s enforcement mechanism.