New Changes and Old Challenges in the Economic Governance of the Eurozone

The tenth anniversary of the creation of the euro coincided with the most severe economic crisis since the Great Depression of the 1930s. And it did so amid uncertainty over the ratification of the Lisbon Treaty. Its entry into force will allow for some improvements, such as greater economic coordination, but some of its weaknesses will remain. Despite this, as a whole the eurozone will probably emerge strengthened from the crisis. This article analyses criticisms and proposals for improved European economic governance, including those that remain up for debate after these ten years, those which will probably be applied following the entry in force of the Lisbon Treaty, and those which might arise as a result of the crisis. The crisis has focused much interest on the following two questions: who ser ves as the voice of the euro in the world, and which countries are going to join the eurozone and which ones are to be left out. We will address these two issues first, then the three traditional pillars of EU economic policy (monetary, fiscal and supply policy), and finish with a section on changes in the distribution of power caused by the crisis and the Lisbon Treaty.