From monetary integration to economic union

This chapter deals with another important aspect of European sovereignty: the completion of monetary union, which is one of the most important goals to be achieved, if not the most important. Progress toward completing monetary union accelerated significantly after the euro crisis that erupted at the end of the first decade of the century. Looking ahead, the authors argue that the appropriate way forward is to deepen monetary and financial integration by completing the banking union and the European capital markets union. Without a single market for capital, it will not be possible to support the huge investments required by Europe’s environmental transition. At the same time, the completion of the banking union and the capital markets union is a necessary condition for the full success of the global role of the euro, which in turn is one of the most important manifestations of European sovereignty. But further steps need to be taken, as European monetary integration and real integration have proven to be closely interlinked and mutually supportive.