Improving the resilience of Europe´s Economic and Monetary Union

The financial crisis has shown that the basic structures of the Economic and Monetary Union do not sufficiently
support the stable development of the economy and financial markets in the eurozone. The development
of the EMU was discussed in the Five President’s Report ”Completing Europe’s Economic and
Monetary Union” published in the summer of 2015. The aforementioned report provides an outline for the
discussion on the development of the EMU in the years to come. This expert report outlines two alternative
visions for the development of the EMU’s basic structures. These are as follows: the EMU based on centralised
governance and the EMU based on market discipline. Each of the two visions forms an internally consistent
model in which the relationship between power and responsibility is realised in the way required by legitimate
decision-making and thus creates a foundation for democratic acceptability. Neither of these visions
restricts the possibilities for deeper integration. Both visions enable the transfer of power to the Union insofar
as is deemed justifiable. This report evaluates the ideas proposed for the further development of the EMU in
relation to the two aforementioned EMU visions.