Illustration for EconPol Working Paper 14

Macroeconomic Imbalances and the Euro Zone. Alternative Views

EconPol Working Paper
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Why are macroeconomic imbalances so important in the Eurozone and can the European Commission’s Macroeconomic Imbalances Procedure (MIP) address them? EconPol expert Roberto Tamborini examines critical and alternative views of this procedure. A common thread across alternative views is that the right approach to problems arising from capital movements across a monetary union is the so-called Banking Union, not the MIP. Overall, its critics all contend that the MIP, together with other Eurozone regulations, is conceived as a substitute for (good) federal government that we do not have (or want).