"The main goal of this report is to analyse those elements underpinning the economic governance in the European Union. In light of the current economic crisis, re-thinking the economic EU architecture, and in particularly that of the euro zone, appears more needed than ever.

Xabier Vence, the author of the study, argues that the crisis hitting the EU since 2007 is not only economic, but is, to a great extent, political. To him it represents the failure of a certain model of European integration which has proved to be all too fragile.

Analysing the current financial, economic and political structure of Europe it becomes clear that there is an important choice to be made in terms of crises-exit policies: (1) continuing with the existing exit strategy, which will very probably lead to an economic impasse in the short to medium term, or (2) accepting the need to adopt a new paradigm, implementing deep institutional changes that steer up European economies.

Urgent action is needed, says Vence, because the problems are of such a scale that many voices question the future of the EU itself. He himself, feels that either the EU will move decisively towards a more federal solution on a genuinely democratic basis, or it will regress to a scenario where a large measure of sovereignty is restored to its constituent countries. More and more, the current situation seems unsustainable."

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