Europe is facing its toughest test ever. The debt crisis brutally revealed all the cracks in the economic and monetary union: also, the decade-long accumulation of public debt and lack of competitiveness of some national economies, as well as shortcomings of the European treaties. Despite the European Union’s most strenuous efforts, it has not yet won back the confidence of financial markets.
There are forces that are betting on breaking up the eurozone. Let us stop and think what that would actually mean. The eurozone is the economic backbone of the EU. Its stability directly affects non-euro states and global financial markets. An erosion of the eurozone would jeopardise Europe as a political project, and with it the chance to make our values and interests be heard in the new power set-up of the 21st century.
Stabilising the eurozone is in the interest of all 27 EU member states, not least the UK, with its extremely close economic ties. Time to find a solution is running out fast. Three things need to be done urgently if people and markets are to regain confidence in Europe.