Original article by Maria João Rodrigues published in Notre Europe
While the European Heads of States and Governments, institutions, and social partners meet at the High level conference on youth employment in Paris, Notre Europe - Jacques Delors Institute publishes a Policy Paper on these issues, by Maria João Rodrigues, member of the board of directors.
After having presented what kind of divergences exist in the EU and in the euro area in this context, the author assess the EU tool box to cope with these divergences and proposes solutions to brake them. She also answers the questions about the possibility for monetary integration to work without fiscal capacity or what kind of fiscal capacity is needed in the EMU and how to build it up. She finally asserts we need to re-balance the conditions to get financial support and proposes an alternative policy-mix in order to do so.