Completing the economic and monetary union: What economic and fiscal governance?

On 25 March 2017, at the occasion of the 60th anniversary of the signature of the Treaties of Rome, the European leaders reiterated their commitment to completing the Economic and Monetary Union (EMU). While the recent crisis provided a decisive impetus to the enhancement of the EMU economic and fiscal governance, important shortcomings remain. Addressing them is a necessary condition to create a more stable and prosperous Union. In this chapter, we provide an overview of the current setup and of the avenues to reforming it, weighing risk reduction and risk sharing. We conclude by discussing the scope to introduce reforms in the EU.