As this report argues, EMU’s design flaws are determinant factors. Some argue that a uniform monetary policy for a heterogeneous group of countries lies at the heart of euro area’s current problems: uniform interest rate policy for a heterogeneous monetary union reinforces the differences between countries instead of leading to their convergence, therefore, representing a mechanism for crisis. However, this does not imply that the monetary union is bound to fail, nor that the heterogeneity of real interest rates is unequivocally a cost of monetary integration. It needs to be said that the theoretical concept of an optimal currency area has made us forget that diversity is the basis for trade, credit and mobility, as well as policy coordination. If the EMU is considered as an insurance policy, than such differences provide an opportunity for risk diversification and thus the possibility of reducing the risk for everyone in the insurance pool. Already we are observing debt sharing mechanism, which some see as a step towards establishing shared eurobonds: eurobonds with a uniform interest rate could address the low growth risks and debt servicing of struggling Member States. That said, eurobonds carry moral hazard and should not be seen as the solution to the crisis, and should be considered to be introduced only after the implementation of structural reforms and fiscal consolidation