S4 Ep24: Director’s Cut: The drama of the EU and euro area

Bruegel director Guntram Wolff and Ashoka Mody – visiting
professor in international economic policy at Princeton
University – explore subjects addressed in the latter’s latest
book, Euro tragedy: a drama in nine acts.


Kicking off this Director’s Cut of the 'The Sound of Economics',
the two explore the historical development behind the EU's
creation. Ashoka Mody argues that the adoption of the euro as a
single currency has exacerbated economic divergences between EU
Member States as some do not have the institutional maturity or
capabilities to fully adopt monetary policy measures. Guntram
Wolff points out that in the view of Helmut Kohl, the adoption of
the euro was a means to further reunite the continent and support
peace-building. They also discuss the role of social democracy in
the drama on the future of Europe.


The conversation from this episode explores the development of
the EU from its early history until its present-day situation.
Member States’ commitments to the European project from a
political and economic point of view are touched upon, with a
particular focus on Germany's role within the whole debate. For a
more in-depth discussion on the subject, be sure to play back the
full recording of the Bruegel event chaired by Maria Demertzis
and featuring Ashoka Mody and Guntram Wolff.