Proposals for EU reform and deepening have proliferated.
In the European Union formally or informally, they must be acknowledged and taken into account.
Especially with regard to the eurozone, most proposals envisage further deepening of central management structures on a federalist basis.
They then put a bracket around meaningful consolidation strategies.
Yet, these should be considered the top priority.
One reason why it’s not happening follows from the dogma that the eurozone cannot operate as a transfer union.
But that is the rationale behind any federal arrangement covering a monetary union.
The US, a mature federal system, operating as a transfer union, has less controls on the policy options available to its component parts, than the eurozone already has as of now.
Meanwhile, the “terms of trade” defined by the eurozone’s implicit internal exchange rate, actually make it a sytemic “transfer union” from south and east to north and centre.
The EU should aim to bridge these contradictions through a political settlement.
Firstly, it must focus on convergence between economies and consolidation of existing euro management structures.
Otherwise, deepening of the eurosystem will remain either a chimera or a further curb on the weaker, smaller member states.