The Ulysses Complex
The first realistic program to resolve the euro crisis
What does the euro have to do with Greek mythology? It’s very simple:
Like Ulysses had to resist the sound of the sirens, EU member states have to resist the seduction of new debt. Under current policy, however, they will always find it difficult.
Clemens Fuest, new head of the ifo-Institute, and the economist Johannes Becker tie the euro zone to the mast. They propose a way that strengthens the democratic control of the states, and makes this this obligation binding and the monetary union therefore less prone to crisis.
Their reform programme consists of 5 points: The regulation of banks, monitoring of debt, the reform of the European bailout mechanism (ESM) and the European Central Bank and, last but not least, strengthening of national economic policy. A clever plan, which spans a bridge across the ideological camps. And an important book. Because despite the refugee crisis and fear of terrorism, our main concern should still be the economic structure of Europe.
Clemens Fuest, Hans-Werner Sinn’s successor as head of the ifo Institute, lists the cardinal errors of the monetary union.
What is ailing the eurozone and how it can be cured
“Clemens Fuest has the courage to state things in clear words.”
Olaf Storbeck, Handelsblatt