The former Greek finance minister and economist stated on Euronews’ Europe Today morning show that the EU faces a crossroads between forming a federation or dissolving, attributing Europe’s fragmentation to insufficient fiscal and investment frameworks.
Former Greek Finance Minister Yanis Varoufakis criticized European Commission President Ursula von der Leyen for delivering hollow statements, emphasizing that Europe must decide between federalisation or breaking apart.
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«There are two paths ahead – we stand at a crucial crossroads. Either Europe advances towards federation, or the euro collapses,» Varoufakis remarked on Euronews’ Europe Today broadcast on Thursday.
The economist highlighted that EU leadership is currently avoiding making a definitive choice, instead «drifting in the space between these options».
Varoufakis attributed Europe’s difficulties to the presence of a monetary union devoid of adequate fiscal and investment mechanisms, stating the continent has experienced a lack of funding throughout the last twenty years.
«Our situation is tragic because we possess federal funds and a powerful central bank, yet 20 separate treasuries cannot truly depend on it,» he noted.
He further stated EU leaders «fail dramatically to address the crucial issue» concerning eurobonds—specifically, the question of which entity would issue the debt.
Intensifying discussion on Eurobonds
Varoufakis’ remarks were delivered as EU heads met Thursday at Alden Biesen castle in Belgium for an informal summit focused on competitiveness, where eurobonds surfaced as a principal point of contention.
Earlier in the week, French President Emmanuel Macron advocated for «future-oriented eurobonds» aimed at financing strategic initiatives, highlighting that global markets are searching for alternatives to the US dollar.
German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni are scheduled to unveil a joint economic policy prioritizing deregulation, whereas the Netherlands, Nordic nations, and Baltic countries oppose «Buy European» policies, viewing them as protectionist measures.
Former Italian Prime Ministers Mario Draghi and Enrico Letta participated in Thursday’s discussions to provide insights on boosting European competitiveness.
The informal meeting seeks to formulate proposals ahead of a formal EU leaders’ summit slated for late March.