Summary : Over the past 25 years, the euro faced various crises, prompting a reassessment of its governance. Concerns arise regarding the ECB's exposure to risk and the necessity of deep reforms for managing growing ecological, financial, and geo-economic risks. Despite initial achievements like the banking union, challenges persist, such as financial instability and economic fragmentation. Policymakers must address these risks through enhanced monetary and macroprudential policies, fiscal coordination, and supply-side fiscal measures to navigate digitalisation and environmental challenges effectively. This document was provided by the Economic Governance and EMU Scrutiny Unit at the request of the Committee on Economic and Monetary Affairs (ECON) ahead of the Sailing in all weather conditions the next 25 years: challenges for the euro Monetary Dialogue with the ECB President on 15 February 2024.

Authors : Christophe BLOT, Jérôme CREEL, Hubert KEMPF, Sandrine LEVASSEUR, Xavier RAGOT, Francesco SARACENO