Why can’t Europe get it right the first time, or the second or the third?

Superb article from Douglas Eliott of Brookings with the same title. He looks at this perplexing question most people are asking.

He says the answer is the cruel set of constraints a European politician faces. The choice is between doing something for Europe and losing the next elections or preferring to make domestic policies which are fine with electorate but damages Europe as a whole. They end up being lost between the two and keep postponing the solutions for their problems. Then problem of coordination of decisions in 17 economies adds further fuel to the fire.

He says the best bet for Europe is to float its Eurobond or Blue Bond which will be guaranteed by the governments and help fund its debt troubles. It is the weakest form of fiscal integration which will not require permissions from electorate and provide market confidence.

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