Yesterday I presented a paper at the European Parliament in Brussels in the context of the meeting between the Parliament and the President of the Eurogroup which will take place today. I argue that more fiscal convergence in the Euro area has come at the cost of increasing economic divergence in important economic outcomes, such as unemployment rates, investment and, to a lesser extent, growth rates. I also evaluate critically the recent guidelines for the Stability and Growth pact and discuss some drastic proposals for the reform of the economic governance in the Euro area.
This is the link to the paper