That is all the more the case today when unemployment in Europe has largely structural causes. The permanent anti-inflationary stance of the monetary union is therefore an essential condition for Europe’s future success in creating and safeguarding jobs.
The Capital Markets Union will enhance cross-border investment and consequently strengthen private sector risk-sharing across countries, as returns on assets and access to credit become less correlated with domestic economic conditions in individual Member States. Besides enhancing the channels of private risk-sharing, a fiscal stabilization tool to cushion large macroeconomic shocks, that is, public risk-sharing, is warranted in the euro area.