The Euro and the Nation-State That Never Disappeared: Would Europe Benefit from the Return of National Currencies?

Research output: Chapter in Book/Report/Conference proceedingBook chapter

Abstract

This chapter discusses the current problems and future prospects of the euro area. The author argues that the problem for the euro area is not the return of the nation-state, but that the nation-states never disappeared. A common currency requires common economic policies, which is largely lacking in the euro area. As a result, large economic and social imbalances have emerged. The chapter examines proposals from the European Commission to increase the level of co-operation to reduce the imbalances. He finds the proposals backward-looking and insufficient. Towards the end of the chapter, the author explores possibility of some countries leaving the euro area. He finds that a friendly divorce is costly in the short term, but likely needed to restore economic balance in the long run. According to the author, a smaller euro area may mean more European co-operation down the line.

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Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Economics

Keywords

Original languageEnglish
Title of host publicationThe European Union and the Return of the Nation State
EditorsAntonina Bakardjieva Engelbrekt, Karin Leijon, Anna Michalski, Lars Oxelheim
Place of PublicationCham
PublisherPalgrave Macmillan
Chapter7
Pages165-189
Number of pages34
ISBN (Print)978-3-030-35004-8
Publication statusPublished - 2020 Jan 20
Publication categoryResearch
Peer-reviewedNo