Many people still dream of a politically fully unified Europe that would help overcome the difficulties currently faced by EMU. In our view that dream should not guide politics. Given the obvious inability of the European institutions to appropriately manage the currency union, realistic observers have to admit that currency union was too ambitious a goal. The attempt to advance more rapidly on the way towards political union by means of a currency union has not worked out.
Now, paradoxically, Europe has to retreat if it is to progress again.