Existential discussions on the single currency are a waste of time. Surveys show that the vast majority of European citizens are in favour of the euro. Emmanuel Macron and Angela Merkel propose creating a budget for the euro area. What is that budget for? The Meseberg agreement is an important contribution to the reform of the euro area.
This will be crucial for the smooth functioning of Monetary Union, given that the Stability and Growth Pact is an indispensable part of its institutional setting. Following the significant budgetary improvement recorded in 2006, the latest available forecasts suggest a further reduction in the government deficit-to-GDP ratio of the euro area over the period 2007-08.