Governance and institutions for stability and growth in the Eurozone

This chapter aims to contribute to the debate on which kinds of governance and institutions are needed to ensure stability and growth in the Eurozone. Despite the economic recovery, the Eurozone does not have effective institutions to ensure stability in the face of a new economic crisis (without forgetting legitimacy, transparency, and the ability to meet the expectations of greater prosperity for Euro-area citizens). This chapter supports the view of a deep rethinking of the European monetary union (EMU) with a different governance and institutions. The new governance should imply a renewed political agreement among member states in both the Eurozone and the European Union (EU). This political agreement must lead to a reconsideration of the Maastricht parameters, a different approach of European institutions, and a change of the EU treaty. This chapter also discusses the role of institutions in balancing European interests with those of member states to provide a consistent approach to stability and growth.