The EU Fiscal Crisis: Forcing Eurozone Political Union in 2011?

The end of the euro would be the end of Europe - only tough collective action from eurozone leaders can prevent financial meltdown. But do political leaders fully realise the enormous scale of what is required and the frightening consequence of failure, and that intense financial and economic pressures are forcing far-reaching political changes in the eurozone? This searching and timely new study examines the driving forces and potential outcomes of the eurozone debt crisis. In early 2011, the eurozone debt crisis looks likely to take a dramatic turn for the worse - raising the intensity of the search for enduring solutions as the markets now price six states as 'risky'. The eurozone leaders have collectively affirmed "that they stand ready to do whatever is required to ensure the stability of the euro area as a whole. The euro is and will remain a central part of European integration." Chancellor Merkel of Germany and President Sarkozy of France also sent New Year messages to their citizens that cast the issue in terms that were both stark and historic. It is increasingly clear that the eurozone will take tough collective action on the economic governance of its members. However, in The EU Fiscal Crisis: Forcing Eurozone Political Union in 2011?, Graham Bishop - a leading technical analyst of economic and structural developments in the financial markets of Europe - argues that the eurozone leaders have yet to truly grasp the huge challenges they face and the implications of failure. Furthermore, intense pressures from the interactions of financial markets, economics and politics are forcing the creation of a genuine eurozone political union. The eurozone now faces several options for its future actions. Three scenarios are considered: an inflationary debt spiral; default; or the emergence of a collectively strong, federal eurozone. Graham convincingly argues that the visionary approach of the latter option is the only way forward for Europe. "In this important book, Graham Bishop sets out many of the key challenges and choices facing policy makers as we move towards a system of European economic governance. It provides a valuable and thought-provoking contribution to one of the most important debates on public policy in Europe today." Jerzy Buzek, President of the European Parliament "Graham Bishop explains why failure of the Euro is not an option and why repairing flaws in a currency that serves 330 million people requires bold steps. Essential reading for Eurozone Finance Ministers!" Sharon Bowles MEP - Chair of the Economic and Monetary Affairs Committee of the European Parliament 'Many British commentators make assertions about the Eurozone. Graham Bishop, by contrast, brings to the subject economic expertise, rigorous analysis and political insight. His book should bring the issue roaring back to the front burner of British policy making."Sir Stephen Wall (UK Permanent Representative to the EU 1995/2000 and EU adviser to the Prime Minister 2000/04) "The reaction of the EU heads of government to the euro crisis has been late, short term and inadequate. What is needed is a clear-headed convergence plan that installs proper EU economic government. Graham Bishop brings his great experience of EMU to plot the way forward and finds solutions which are financially stabilising and democratically acceptable." Andrew Duff MEP - Constitutional Affairs spokesman, ALDE "Europe's leaders are still thrashing about looking for a solution to the euro crisis. But Graham Bishop's careful analysis points out that their response has already taken them quite a long way down the road to greater political integration. They must now recognise that reality and move decisively. " Peter Sutherland, European Commissioner 1985/89, former Director General of GATT and Chairman of Goldman Sachs International