There are a large number of proposals on the table concerning the future design of the euro area. All proposals share the ambition to make the monetary union more stable and more resilient. But it is an open question which of the recommendations are appropriate to this end. Allow me to approach this question in three stages.
I will set out with the basic ingredients for a stable union. As you will see, these are largely not in dispute. Then I will turn to the institutional framework which, one might say, resembles the fundamentals of baking. Finally, I will discuss some recent reform proposals – or specific baking instructions, if you like.