A Greek endgame?

Senior Associate Research Fellow Paul De Grauwe argues in this CEPS Commentary that the Greek debt crisis has exposed a structural problem of the eurozone as a whole created by the fact that the monetary union is not embedded in a political union. This imbalance leads to a dynamics of creeping divergencies between member states and there is no mechanism to correct or alleviate it. These divergencies in turn are at the core of budgetary divergencies and crises. In the absence of closer political union, he calls for modest steps that would signal a determination on the part of the eurozone members to commit themselves to a future intensification of the process of political union.