Making the Euro Whole
Besides the lack of a common treasury, the euro suffers from other shortcomings, which the authorities do not seem to have fully understood. Indeed, the authorities are committing at least two mistakes that, if not remedied, will condemn Europe to a bleak future.
NEW YORK – The architects of the euro knew that it was incomplete when they designed it. The euro had a common central bank but no common treasury. This was unavoidable, because the Maastricht Treaty was meant to bring about a monetary union without a political union.