CHAPTER 4

The Flawed Sociopolitical Architecture of the Eurozone

The introduction of the common currency was in no way just an economic decision. Monetary Union is demanding that we Europeans press ahead resolutely with political integration.

Gerhard Schröder, August 30, 1999

As a monetary union represents a lasting commitment to integration which encroaches on the core area of national sovereignty, the EMU participants must also be prepared to take further steps toward a more comprehensive political union.

Annual Report of the Deutsche Bundesbank, 1995

Rodrik’s Trilemma

Efforts to create a more deeply integrated Europe, at least economically, have been detailed in the previous two sections. The implementation of the European monetary union created ...

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