Europe’s Next Grand Bargain

In the last year alone, the force of the Eurozone debt crisis has pushed reluctant EU policymakers across a series of political Rubicons – Greece has been bailed-out, a temporary eurozone rescue mechanism has been installed, that mechanism has been activated for Ireland, and agreement that a permanent replacement scheme is needed has been reached.

In keeping with Jean Monnet’s dictum that ‘Europe will be forged in crises, and will be the sum of the solutions adopted for those crises’, each of these measures, even the agreement on the need for a permanent financial facility for troubled states, was compelled by overbearing market pressures. Together they amount to a major change in the way the EU functions.

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