Friday, January 4, 2013

Daniel Gros: Deeper Integration Is Not the Answer

For Daniel Gros, deeper integration of the EU is not the answer to the current woes of the euro or slow European growth.

1 comment:

PF said...

Several good points in there, but the limits of the framing should be more directly confronted. As with US debates over "more vs. less" government or regulation, the real issue is better construed as one of type and purpose: what sorts of integration and management at the European level would best serve the welfare of people in Europe? The goal should be to reconfigure and manage the interdependence between European nations in progressive ways. Deeper vs shallower integration seems secondary.

For example, right now, the balance and type of financial integration and insurance between national and European regulators mostly serves the interests of banking elites *already* operating at the European and global level, looking for short-term profits and corrupt rents. A new balance of financial regulation, which one could characterize as "deeper" integration I suppose, might help counteract that corruption and instability and produce more sustainable growth.