Euro area deepening and reform [What Think Tanks are thinking]

Briefing 03-12-2019

Countries sharing the euro have done little to change the functioning of the single currency area since French President Emmanuel Macron called for its major overhaul in 2017. Many analysts and politicians have attributed the lack of significant reforms in this area to Germany’s – and some other countries’ – cautious approach, although also underlining that the currency area is now much stronger and more resilient than in the wake of the financial crisis of 2008. The single currency area’s most immediate challenge is to cope with the economic slow-down, which is partly a consequence of global trade disputes. A smooth transition in leadership at the European Central Bank will also be very important. This note brings together commentaries, analyses and studies by major international think tanks and research institutes on challenges facing the euro area and related issues. Earlier publications on the topic can be found in a previous edition of 'What Think Tanks are Thinking' published in February 2019.