Eurobonds are no longer about (just) solidarity 

By Maria Demertzis

Europe’s monetary union still rests on an institutional contradiction: monetary policy is centralised while fiscal policy remains national.

That may have been politically expedient at Maastricht, but it was never an economically complete design.

One continually faces, therefore, the question of how long the euro can rely on a single central bank and a cluster of national sovereign balance sheets whose credit risk diverges in every crisis.

Once the currency is federal...