The euro crisis has been a major stress test for the European Economic and Monetary Union (EMU). Among other things, the crisis turned into a recession for all the euro area ‘stressed countries’ (except for Ireland). In fact, for the EA15 (excluding Portugal, Italy, Greece, and Spain), the recovery has followed a similar pattern to (or slightly better than) the US and Japan (Figure 1). This reminds us of Jean Monnet’s old quip that Europe “will be forged in crises”. Whether it will or not depends crucially on whether we have learned the lessons of the euro crisis and, in particular, whether there is the political will and wisdom to transform these lessons into improved policies and institutions. However, the fact that the crisis experience has been very different across euro area countries suggests that Jean Monnet may be getting different answers this time.
In this month’s Perspectives, we reproduce the column written by scientific coordinator Ramon Marimon and chair of the advisory committee Thomas Cooley to introduce ADEMU’s eBook, which presents the projects findings and proposals, which appears in VoxEU.org: see the full article