A New Governance for the European Union and the Euro: Democracy and Justice

Abstract

The report provides a democratic explanation for the crisis and the EU’s failure in successfully addressing it so far. It argues that the solution to the crisis and the future of EU governance must depart from a renewed justification of the project of European integration which must be founded on its democratic and justice enhancing potential. It criticizes two mainstream models of governance for the Euro area and explains the advantages and political viability of an alternative model based on a new EU budget, new EU policies, more EU politics and a more effective political authority. The financial solidarity necessary for any successful model of governance of the EU must be detached from transfers between states and related, instead, to the wealth generated by the process of Economic integration.