Policy brief 10 – Repair and Prepare: Growth and the Euro after Brexit – a comment

IPP Policy Brief 10,  Repair and Prepare: Growth and the Euro after Brexit – a comment, by Ricardo Cabral (University of Madeira) and Institute of Public Policy researchers Luís Teles Morais and Joana Vicente, is based on the presentation prepared for the Conference “Repair and prepare: Growth and the Euro after Brexit” held in 2017 in Lisbon.

With this brief, the authors intend to make a brief critical analysis of the report by the Bertelsmann Foundation and the Jacques Delors Institute (Repair and prepare: Growth and the Euro after Brexit), where the necessary steps and tools for a more integrated Economic and Monetary Union are analyzed, as well as the improvements that must be implemented in order to avoid future crises, ensuring economic stability and growth in the euro area.

More specifically, the purpose of this brief is to identify and analyze the key strengths and weaknesses of the report, focusing on the first two “blocs” (1. “First aid kit” for the euro and 2. Reforms and investment for economic growth), which correspond to a less distant time, and thus less uncertain than the third block (3. Risk of sharing and sovereignty).

They also go on to conclude that the report presents second best solutions in order to circumvent political impossibilities associated with the EMU project and that the first two blocks will not be enough to stabilize EMU and New crises – although they represent important contributions.