Reuters: Stark says Europe should put integration on hold for five years

25 June 2013

Former European Central Bank chief economist Jürgen Stark has called on European Union leaders to put further integration on hold for up to five years, work out where they want to take the project, and decide who should still use the euro.

Stark, a hawk who quit as the ECB's top economist in 2011 and has since worked as a consultant, criticised the "piecemeal approach", which he said lacked democratic backing and bore longer-term risks. Instead, he called for a broad, open-minded discussion about Europe's future, echoing concerns raised by British Prime Minister David Cameron in January that Europe is losing touch with its citizens. "Let's take some time out, a period to reflect of, let's say, five years to think which direction Europe should take", Stark said, saying EU and eurozone enlargement should remain on hold for that time.

During this break, political leaders needed to guide the debate to assure international investors of the irreversibility of the euro, Stark said, reiterating his view that unfit members should be able to leave the bloc temporarily to recuperate.

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