Crisis Management in the Euro Area: Why Europe's Policy is on the Right Track (Online-Publication)

The aim of this article is to show that the crisis-driven pragmatism of politics is an appropriate way of resolving the problems in the currency area and placing the European Economic and Monetary Union (EMU) on a new, more stable footing. The paper will show that the policies that have been agreed at the heart of the Fiscal Compact and the Stability and Growth Pact, along with the establishment of the EFSF and ESM stability mechanisms and the planned banking union, are appropriate ways of addressing the structural defects in the EMU.