Institute for Research in Economic and Fiscal issues

IREF Europe - Institute for Research in Economic and Fiscal issues

Fiscal competition
and economic freedom

by ,

The same euro mistake under a different name

Despite being bombed by information, it seems we have forgotten the roots of the debt crisis. Instead we play a martingale game, where the only precaution after losing a round is to double the bet for the next one. The solution is not called EFSM, EFSF, ESM, SMP, OMT or banking union. These are just different names for a single problem: diluted responsibility. Unless we find a way to make local politicians pay locally for local promises, the euro project will be always in trouble.

Creating even a bigger common pie by deeper integration and shared responsibility is the core of the problem, not its solution, writes IREF Fellow Richard Durana, Director of the Institute of Economic and Social Studies (Slovakia). }}

Share this article :

Related contents ...

The Relevance of Regulation for the Greek Debt Crisis
Iref Working Paper

Italy and the need for a new industrial revolution

The Northern Powerhouse

The Italian (Bad) Bank

Any message or comments?

Show Form

 css js

By continuing browsing our website, you agree with our cookies policy

Monthly newsletter
Receive our publications for free