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Fuest, Clemens (May 2018): Reforming Europe, the role of trust, and the cost of doing nothing. In: Campos, Nauro; Sturm, Jan-Egbert (eds.) : Bretton Woods, Brussels, and Beyond. Redesigning the Institutions of Europe. A VoxEu.org Book, London: CEPR Press. pp. 151-158
Full text not available from 'Open Access LMU'.

Abstract

The euro area needs balanced reforms that combine more risk sharing with stronger market discipline. A key reason for political resistance to reform is a lack of trust both between member states and in European institutions. At the same time, the weaknesses of the status quo and the costs of no reform are underestimated. Successful common undertakings in policy areas other than the euro may help to build trust and make progress in euro area reforms as well.