ECB chief economist Peter Praet said a prepared speech that “the notion that the euro provides stability and security has been weakened by the gaps in our governance framework”. Thus, “it is not surprising that claims that countries would be better off outside the euro find a sympathetic audience.”
To him, the long run solution most likely involves “deeper fiscal integration”. In the short run, Praet urged to “complete banking union”. While the SSM has moved Eurozone towards the goal, “for deep cross-border integration to develop, effective institutions for public risk-sharing need also to be in place.”
Praet also pointed out that “rules and norms” of international relations government since WWII are being challenged and replaced by “new power politics where large economies try to impose their will on smaller ones”. And in such a world ” it is undeniable that the EU amplifies the sovereignty of its members.:.
Also, Brexit also underling the pros and cons of EU membership. And, “it is now established that leaving the EU presents a trade-off: countries either have to follow the rules they could once set; or they have accept a diminished level of market access, and ultimately lower welfare for their people.”
