Lorenzo Codogno argues that the economic and financial crisis that started more than ten years ago was not only devastating for the Italian economy, but also jeopardised a key mechanism for achieving political consensus. Brussels’ role as an external anchor for economic policies that are in the common interest but are socially and politically difficult to accept and implement has been undermined. Europe’s governance and fiscal framework are paper tigers, while the discipline imposed by financial markets is even more effective than in the past, but is imperfect, inefficient and risky. Ultimately, it may sanction the failure of European governance, as well as that of the national economic policies that started the new crisis.
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