European Reforms

A Multi-Speed Europe? Differentiated Economic Integration vs. Overall Reform

Abstract

The latest financial and economic crisis and the differentiated recovery process stressed the need for a deeper economic integration. Scenarios that are on the agenda as for the differentiated integration have different priority areas. The basic aim is to make the Economic and Monetary Union complete (EMU 2.0); however, there are still uncertainties. The study provides a wider analysis of the topic with special attention on the unsustainability of the current EMU, the competition of the Banking Union, Euro area risk sharing, fiscal union and on the Euro area common budget.