Munich Economic Summit EconPol Europe Panel: The Future of the Euro

Clemens Fuest, Markus K. Brunnermeier, Anne-Laure Delatte, Marek Mora

The panel discussed what reform and future governance of the euro area should look like in order to achieve a sustainable and incentive-compatible architecture, prosperous development and greater cohesion among its members. The panel addressed questions like: are the euro area and the European financial sector stabilised and sustainable – where do we stand? How can the fiscal discipline of sovereigns be strengthened? Do we need more elements of risk-sharing or a focus on risk reduction? How can risk-sharing and market-discipline be reconciled with achieving an incentive-compatible architecture in the currency union? Should the European Stability Mechanism (ESM) be transformed into a European Monetary Fund? Does the currency union need an exit clause and viable insolvency procedure for its member states? How should TARGET-II imbalances be managed in the future?

Clemens Fuest, President, ifo Institute Munich; Professor of Economics and Public Finance, University of Munich

Markus K. Brunnermeier, Edwards S. Sanford Professor of Economics, Princeton University
Anne-Laure Delatte, Deputy Director CEPII; Member of the Conseil d’Analyse Economique in France, Paris
Marek Mora, Member of the Board, Czech National Bank, Prague