The New Member States (NMS) have to comply with the Stability and Growth Pact (SGP) rules: public deficits below 3% of GDP and public debts below 60% of GDP, although they cannot be subject to fines as long as they are not members of the euro area. Most of the NMS currently run higher than 3% of...

With the launch of economic and monetary union (EMU), a new frame-work for the conduct of economic policies in Europe has been implemented. The ECB’s independence, the Stability and Growth Pact (SGP) and the focus on structural reforms show that‘liberal’views have won over...

We intend to point out three issues. Disparities in growth, inflation and current account balances are a problem in the euro area. The current functioning of the euro area increases growth disparities between the Member States. It is not only domestic problems which could be improved by...

The economic crisis which started in 2008 led to a strong rise in public debts. The sovereign debt crisis in euro area southern countries breached the unity of the euro area and weakened the ‘single currency’ concept. The paper shows that this situation is not due to a lack of fiscal...

The 2007-2009 crisis has led to a return of Keynesian analyses and policies. The paper analyses the contradictions between a structural crisis, the implementation at a very large scale of Keynesian policies and the denial to undermine financial capitalism. The crisis has led the French...

Since the launch of the euro, persistent and even rising disparities among Member States have made it difficult to implement short-term or structural common economic policies. The article gives an overview of euro area disparities in terms of growth and inflation and imbalances, mainly...