Köhler on euro
The euro project is a success. In a remarkably short time, it has created a large, stability-oriented economic and monetary space. But the record to date falls short of the results we have all hoped for. The hope has been that the euro would prove a spur to stronger growth and job creation. Given developments over the past few years, I am beginning to worry that it may be having the opposite effect: the elimination of the exchange rate constraints, and the associated discipline on policies, may have reduced rather than enhanced the drive for structural reform.
The Laken summit is the right place to bring renewed energy to economic and monetary union and to revitalize the momentum for Europe in facing two critical challenges:
- The economic challenge—to enhance growth in Europe by more ambitiously embracing structural change and realizing the full potential of the single market for income and job creation; and
- The political challenge—to clarify the future quality of European integration and stand up to a true leadership role in the world.
As European leaders rise to these challenges, I am confident the euro will prove to be a lasting success for Europe and the major contribution to the stability of the international monetary and financial system.
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