1. Introduction
The current macroeconomic policy approach in the Eurozone and the institutional setting on which it is based have obviously failed to prevent the global financial and economic crisis of 2007-2009 from becoming a euro crisis, on the one hand, and to generate a rapid recovery from these crises in the Eurozone, on the other hand. After the Great Recession of 2008/9, the Eurozone was hit by another downturn in 2012/13. Although there has been some meagre growth since then, by 2016 the Eurozone had only slightly exceeded the level of economic activity before the crisis in 2007, but it had not at all returned to the pre-crisis growth rate or even growth path. In several countries, like Spain, Finland, Portugal, Italy and most notably Greece, real GDP is still (considerably) below the pre-crisis level of 2007. Furthermore, several Eurozone member states and the Eurozone as a whole have turned towards the German export-led mercantilist model, running increasing net exports and current account surpluses as a major driver of demand and growth. This risky strategy is contributing to global imbalances and raises severe doubts regarding its sustainability, both economically and politically.
