Can a monetary union work without a political union?
Sixten Korkman has described the euro as a currency without a state. The description hits the mark. Although the euro is largely a political project, political unification was not really seen during the first years of the euro. The situation changed after the 2007 – 2009 financial crisis. As a result of the crisis, many euro countries drifted out of the international loan markets, which forced the countries of the eurozone to hastily set up different kinds of support mechanisms. The most recent of these is the bank union, the purpose of which is to reduce the dependence of euro countries on their banks. Can these measures be considered as being sufficient? Can the euro work as a currency without a state?
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