The Need for Innovative Policies and Further Integration: A Real ‘Economic and Monetary’ Union Leading to a Future Political Union?

Abstract The chapter emphasises the need for radical changes in EU policies and governance. In the short run, there is an urgent need for an aggregate demand shock exerted through a European plan of public investment (much more extensive than the Juncker plan). This plan, possibly accompanied by the issue of Project Eurobonds, would also stimulate private investments. In regard to long-run reforms, it is necessary to complete the monetary union, with the creation of a Eurozone budget, a Eurozone Finance Minister, etc., in order to realise a Fiscal Union. Thus, a ‘genuine’ Economic Union could be the basis for a future political union. This scenario is the desirable alternative to the possible dissolution of the Eurozone - or even the European Union (EU) as a whole - that could be triggered by the Brexit event.

Keywords Economic union • Fiscal union • Political union • Investment plan • Juncker plan • Project Eurobonds • Brexit