Fragmentation is a clear and present danger for the European Union. The confluence of shifting geopolitical dynamics, rapid technological change, and climate disruptions is reshaping the European political landscape, with profound consequences for job security, defense, migration, and energy policy. As these realities become increasingly tangible, they threaten to erode the unity that has underpinned decades of stability and prosperity.
While there is broad recognition that the EU must respond collectively to these challenges, aligning national and supranational interests remains an ongoing struggle. As warned in the Draghi Report, the slow economic stagnation facing Europe may be overshadowed by the immediate risk of political disintegration. Against this backdrop, we must ask:
- How can Europe remain tangibly bound together through its legal, economic, and monetary framework in spite of strong political headwinds?
- What are the implications for EMU, macroeconomic, and financial developments of fragmentation scenarios?
- To what extent and how could the single market and the single currency temper the effects and causes of fragmentation?
- What is the ‘right balance’ between national and European policy spaces that would allow for an advance on the supply and financing of EPGs?
- Is there a path forward for European integration or are we resigned to Treaty-based enhanced cooperation and Schengen-type intergovernmental agreements?
This event invites academics and policy professionals to engage in an urgent and forward-looking discussion on preventing fragmentation and securing a resilient European growth model. With the 2025 Florence Report, the EMU Lab aims to consolidate insights and formulate actionable recommendations for a more united and prosperous Europe.
This event is convened under Chatham House Rule. Members of the EUI community are welcome to attend in an observer capacity after successful registration.
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The Economic and Monetary Union Laboratory (EMU Lab) is a collaborative initiative driven by the Tommaso Padoa-Schioppa Chair and the Pierre Werner Chair, aiming to reassess the Economic and Monetary Union's structure in light of current European and global economic conditions.