The crisis has fundamentally transformed Europe’s economic and political landscape. The continent has been divided between creditors and debtors, and between euro countries and the rest. Divisions run deep within countries as well, as inequalities grow faster. Trust is low, the economics is flawed and the politics toxic. Economic recovery is modest at best; it is also fragile and uneven. Courting with deflation, with high unemployment and anti-systemic parties on the rise, and with precariously high levels of public and private debt, Europe seems to be facing the future on a wing and a prayer. What is to be done to arrest Europe’s habit of dangerously muddling through the crisis?
This Policy Network pamphlet presents the case for a new grand bargain to rescue the European project from the perspective of an author who uniquely bridges the gap between academic analysis, policy and politics. It is published in partnership with major European thinktanks in France, Germany, Greece, Italy and Spain. Translated versions will be disseminated in all six languages.