However, these details have proved difficult to finalize. Traditionally, countries inside the north, which tend to be more fiscally prudent, oppose deepening ties with southern countries on concerns which they will jeopardize their finances. More recently, the wave of support for populist parties across the euro zone has also been a drag to completing euro zone reform.
“There will be a worry, including in Germany, which I can understand in addition to share, which monetary policy remains the only game in town in addition to which by the next recession monetary policy could be overburdened,” Villeroy de Galhau said.
“If we have This kind of worry we should strengthen economic union,” he added, defending a pragmatic response coming from European leaders.
The European Council will be likely to give the green light to proposals to transform the European Stability Mechanism (ESM) into a European Monetary Fund, similar to the International Monetary Fund (IMF), in addition to to continue the banking union in June. although there are concerns which This kind of timeline might be derailed after the Italian general election led to a hung parliament.
Poul Thomsen, director of the International Monetary Fund’s European Department, also told CNBC on Wednesday which plans for euro zone integrations are “welcomed” in addition to “encouraging.”
“Clearly we know which the architecture will be not perfect, we know which in order for Europe to better handle a shock inside the future we need to deepen the integration, to build on the architecture,” he said.