Introduction

This chapter analyses the Euro crisis which has broad, global connections and roots, particularly as far as its origin and generating causes are concerned. The chapter argues that, in the future, integration of budgetary policy is unavoidable in order to deal with asymmetric shocks and to promote stabilisation. A federalist future is viewed as not only desirable, but necessary. However, as the fate of the constitutional treaty showed, this cannot be driven as an elite venture, but needs the broad agreement and support of civil society. Monetary stability and the international position and roles of a currency are always closely related to the state of the real economy. In order to secure sustainable monetary stability, balancing national budgets has primary importance. That was the main aim of the Stability and Growth Pact (SGP), which was approved in the framework of the Amsterdam Treaty, according to which member states committed themselves to a stability programme planned to last for several years.