In July 2012 European Central Bank president Mario Draghi famously announced that the ECB would do “whatever it takes” to rescue the Euro. And he added: “Believe me, it will be enough.” In fact, it has so far been enough to avoid the break-up of the eurozone. It has, however, not been enough to push the eurozone out of the recession.
On August 22, 2014, Draghi again suggested something remarkable, which has not been in his initial official script: fiscal policy should take a much more active role in ending the recession.
Does the eurozone need a different fiscal policy? And if yes, will European politicians do whatever it takes? And will it be enough?
In this column, written for The Conversation I will argue, that Draghi’s call is ultimately a call for changing Eurozone governance also with respect to fiscal policy.