Positive things have happened, he added. A procedure to deal with macro-economic imbalances was installed, the banking union is taking shape and emergency support mechanisms have been created. But a fiscal and political union is “totally missing, macro-economic coordination is insufficient and single market initiatives are not fully exploited” he said. For Mr Codogno, the Eurozone needs to clarify its purpose and agree on a roadmap but also needs to involve voters across Europe.

 At the same time, Europe needs to improve the financing of its economy. The quantitative easing by the European Central Bank is working but “credit growth is still struggling” as banks are concentrating on deleveraging and improving their balance-sheets to comply with tighter regulation. Could the Investment Plan for Europe play a role in that respect? For Mr Codogno while the plan ” is important for the long-term prospects of the EU economy”, it is “unlikely to be a game changer for the economy over the near term, but it could support confidence and thus the recovery”.  

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