Joseph Stiglitz can certainly not be counted among the friends of the Euro. His new book, The Euro and Its Threat to the Future of Europe, provides ammunition for Eurosceptics, on whichever side of the political spectrum: a harsh critique of the Single Currency, unrealistic policy proposals on how to save it (e.g. a fiscal federation), the conclusion that an “amicable divorce” would be best. In this interview, Waltraud Schelkle, Associate Professor in Political Economy at the European Institute, London School of Economics and Political Science, provides an alternative read of the euro area crisis.
The European Union (EU) should further integrate fiscally and politically in spite of the many challenges it faces. Nationalist movements across the continent threaten the existence of the EU. The Euro, once the pinnacle of the European project, has been dealt a couple of blows. We cowardly lay blame on refugees, populists and a coin; they will never disappear. It’s not the fault of the Euro. It’s (the lack of) political will, stupid!