Juncker's Euro Initiative Comes at the Wrong Time

In his address, President of the European Commission Jean-Claude Juncker has called for the introduction of the euro in all EU Member States. Professor Friedrich Heinemann, head of the "Corporate Taxation and Public Finance" Research Department at the Centre for European Economic Research (ZEW) in Mannheim, comments on Juncker's proposal for non-eurozone countries to join the EU's common currency.

“Juncker’s initiative to extend the Eurozone comes at the wrong time. The European debt crisis since 2010 has shown that the introduction of the euro in the Southern European Member States was rather premature. It would be unwise to repeat this historic mistake now in Eastern Europe.

Necessary reforms of the Eurozone such as the implementation of a sovereign insolvency regime have so far been impossible. Without such reforms, the introduction of the euro in countries which are politically and economically fragile would pose an incalculable risk. A hasty decision regarding the enlargement of the euro area would threaten the survival of the euro.”

For further information please contact

Prof. Dr. Friedrich Heinemann, Phone +49 (0)621/1235-149, E-mail friedrich.heinemann@zew.de