Community institutions with clearly defined tasks and responsibilities might be helpful beyond the narrow area of economic policy. But, at present, it has to remain an open question whether the nation states are actually prepared to transfer powers to European bodies in the core area of state sovereignty. Without a political union there cannot be a uniform external representation of the euro area.
Yet, I think there are substantial downside risks with regard to the U.S. and European economies, since domestic demand remains vulnerable to shocks given the heavy debt burden in these countries. It is also necessary to be aware of the risk that problems in some peripheral European countries may trigger turmoil in international financial markets, exerting a negative shock on the global economy again.