Together with the Kronberger Kreis, the foundation strives to have market economy principles valued and respected, and to widen the reach of social market economy ideas. I would like to take this opportunity to speak about market economy principles in the European monetary union and to discuss how to strengthen the principle of liability, as a constitutive principle of monetary union.
Market economy principles and European integration “Constitutive principles” is of course an allusion to Walter Eucken, whose constitutive principles of competitive order are still the main pillars of our current economic constitution. Effective competition is key for a market economy and its economic performance. In turn, competition requires free price formation. Competition creates prosperity. However, competition also requires protection.