Distinguished Speaker Seminar: Paola Subacchi: The Road to Fiscal Union in the Eurozone: Fantasy or Reality?

In the presentation Paola Subacchi argues that the fiscal union, and eventually the political union, is the only way forward for Europe's economic and monetary union. Divergences in size, development and institutions present the monetary union with the typical dilemma of policy coordination, that is that countries need to bind to some kind of political framework in order to respect their commitments and do not have a clear incentive to defect. As it is impossible to simultaneously achieve deep economic integration, nation state and democratic politics (Rodrick's poliitical trilemma) then the citizens of the eurozone will need to choose which two of these three goals they are keen to achieve/maintain.

ADBI website