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.
Paola Subacchi is Research Director of the International Economics Research at Chatham House (the Royal Institute of International Affairs). Her main research interest is in the functioning and governance of the international financial and monetary system, with a particular focus on post-crisis policy and institutional change. She is a contributor to peer-reviewed journals and current affairs publications. She is a regular media commentator with the BBC, CNN, Bloomberg, CNBC, Newsweek, the Financial Times, the Wall Street Journal,the International Herald Tribune and the European Voice. An Italian national, she studied at Bocconi University in Milan and at the University of Oxford.
Policymakers, academics and the general public.