The euro was created twenty-five years ago. Where do we stand today? Is the excessive debt of certain founding member states threatening the survival of our common currency? How can competitiveness be restored and trust rebuilt among euro area countries?

This book addresses all these questions. The euro has not fulfilled its promises. Rather than fostering convergence, economic divergence has widened. First, some countries, particularly France, but also others, have refused to commit to fiscal discipline. Second, the euro’s over-protective role has encouraged lax monetary policies, discouraged productive investment, resulted in the proliferation of ‘zombie’ companies, increased wealth inequality contributing to rising social tension.
Calling for clarity, this book puts forward concrete proposals to restore sound public finances, revitalise Europe’s economies, and mobilise savings for investment—thus returning to a path of sustainable growth.

“This book has not been written to instil fear. Rather it stems from a sense of urgency and a conviction that there is still time to act.” — J. de L.

Didier Cahen, PhD in Economics and a graduate of the Paris Institute of Political Studies, is a specialist in European monetary and financial affairs. Since 2000, he has served as Executive Director of Eurofi, a think tank dedicated to promoting the single market for banking and financial services in Europe.

Jacques de Larosière served as Managing Director of the International Monetary Fund (1978–1987), Governor of the Banque de France (1987–1993), and President of the European Bank for Reconstruction and Development (1993–1998). He is a member of the Académie des sciences morales et politiques. 

1. Cover Page
2. Title Page
3. Copyright Page
4. Foreword
5. The Euro Is in Danger - The euro is in danger: The sustainability of some Member States' debt is being questioned, casting major uncertainty over the future of the euro
6. Part One - The mixed record of the euro
   1. Chapter 1 - Economic indiscipline among certain member states
   2. Chapter 2 - How Europe and its financial players have fallen behind
   3. Appendix - Levels of levies on households and businesses remain particularly high in some large member countries
   4. Chapter 3 - The euro saved by the ECB's ultra-accommodative monetary policy
7. Part Two - The Euro at risk
   1. Chapter 1 - The monetary union at a new turning point
   2. Appendix - Method for calculating the stabilising budget balance
   3. Chapter 2 - The cooperation between states is still insufficient
   4. Chapter 3 - Europe's banking and financial integration has not lived up to its ambitions
8. Part Three - What can be done?
   1. Chapter 1 - What not to do
   2. Chapter 2 - Key priorities for rebuilding a Europe focused on growth
9. Conclusion
10. Afterword - Rethinking Europe with respect for national identities
11. Endnotes
12. Acknowledgements
13. Contents