European Monetary Union

He was a lynchpin of the Italian Treasury in the turbulent early 1990s when Italy was forced out of the European exchange rate mechanism, devalued its lira currency and faced the risk of being unable to join the European monetary union.

The greatest risk to European monetary union and Europe’s contribution to the global economy is the persistence of the belief that the ECB, acting independently, can stabilize the European economy.

ECB officials have said the only way to boost the international role of the euro is to strenghten the European monetary union with banking and financial reforms that EU states have blocked for years.

It was critical about the reckless way that European monetary union was launched in the 1990s and, after much thought, preferred that Britain should keep its distance from the eurozone and its rules.

The Greens, whom the chancellor is likely to turn to as part of a potential new governing team, also support Macron’s plans, with some enthusiastic voices even suggesting that Germany needn’t wait for France’s domestic reforms to pass before moving forward together on deepening European monetary union.