77 Pages Posted: 27 Apr 2015
Date Written: April 2015
Entering a currency union without any political union European countries have taken a gamble: will the needs of the currency union force a political integration (as anticipated by Monnet) or will the tensions create a backlash, as suggested by Kaldor, Friedman and many others? We try to answer this question by analyzing the cross sectional and time series variation in pro-European sentiments in the EU 15 countries. The 1992 Maastricht Treaty seems to have reduced the pro-Europe sentiment as does the 2010 Eurozone crisis. Yet, in spite of the worst recession in recent history, the Europeans still support the common currency. Europe seems trapped: there is no desire to go backward, no interest in going forward, but it is economically unsustainable to stay still.
Keywords: euro, euro crisis, European Union
JEL Classification: E42, F45
Suggested Citation: Suggested Citation
Guiso, Luigi and Sapienza, Paola and Zingales, Luigi, Monnet's Error? (April 2015). CEPR Discussion Paper No. DP10559. Available at SSRN: https://ssrn.com/abstract=2599551
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