Does the European Economic and Monetary Union Require a Social Dimension?

Abstract

The economic and financial crisis that gripped Europe after 2008 had negative effects in some Euro Zone countries, displaying structural flaws in the EMU’s design. These effects have threatened their social systems, undermining the political viability of European integration. In this context, at the end of 2012 the social dimension entered in the political debate trough the Five Presidents report, which brought new elements to ensure the Euro´s stability. Since then, other initiatives have taken place, recognizing that the Euro´s governance is still incomplete. The article discusses the need to include the social dimension in the EMU, evaluates the initiatives that have been taken in this area and approach the conditions to enable a central macroeconomic stabilization mechanisms to absorb specific shocks and improve resilience in the EU.