The europe to come

Exactly 20 years after the signature of the Maastricht Treaty, foundations have been laid for a more solid and durable 'fiscal compact' going beyond the current members of the euro zone – a move that is expected to fill the well-known gap left by Maastricht’s 'unfinished business'.

2012 is expected to be delivery time for a new multi-pronged system based on mutual control and mutual trust, which may well encompass both tighter monitoring and scrutiny of national budgets (including sanctions for non-compliance with commonly agreed rules and benchmarks), a more permissive approach to “quantitative easing” by the European Central Bank, and possibly even some initial form of euro zone solidarity in line with the idea of the 'stability bonds'. It is widely understood that only a combination of all these ingredients will eventually do the trick – and it is also hoped that 2012 will bring agreement on their precise sequencing and phasing-in.

ISPI: Commentary: The europe to come [PDF] http://www.ispionline.it/sites/default/files/pubblicazioni/commentary_missiroli_15.12.2011.pdf

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