The reform of the European Stability Mechanism (ESM)
has become a focal point of the debate on the future of economic and monetary union
. Under the label of this reform, a wide variety of proposals is discussed: debt restructuring; a possible backstop for banking union; the future of crisis management; or even changing economic surveillance in the euro area.
This Policy paper, written by Lucas Guttenberg, Senior Research Fellow and Deputy Head of Research at the Jacques Delors Institut – Berlin, structures a debate which is too often all over the place and offers a guide through the proposals on the table.