What risk sharing and macroeconomic policy instruments in the Economic and Monetary Union

The slowness and setbacks of the euro area financial integration process prevent it from playing a stabilising role, or even contributing to economic convergence. The priority is therefore to accelerate the emergence of a financing union, via pan-European banking groups, and a genuine capital markets union that removes the obstacles to the cross-border allocation of savings within the euro area. The complementarity between private and public risk-sharing in a monetary union also leads to the recommendation that current surveillance and coordination mechanisms be strengthened, by creating new stabilisation instruments, under the aegis of a genuine macroeconomic authority for the euro area.