The financial crisis and the future of the Eurozone economic governance

The financial crisis started in 2007-08 has put the European governance structure at the line.1 The Stability and Growth Pact has not been complied with and has proven ineffective in what concern economic coordination in the eurozone. On the other hand, some improvements on the European Monetary Union institutional framework have been implemented. The main issue remains: is the eurozone ready for more integration? Fiscal Federalism and optimum currency area theories suggest that for a currency union to survive it is necessary to undertake more degrees of integration that the eurozone has not achieve so far. It is with this in mind that we perform a study the US’s and Germany’s constitutional framework in order to assess its viability for the eurozone.