Nova EUropa's three-stage plan for the consolidation of the Euro, the democratisation of the Eurozone and the foundation of a European Republic

In the 2nd decade of the 21st century, Europe and the world are facing big challenges:

• Climate change – caused by mankind – is threatening to become a climate catastrophe. In defiance of scientific evidence, the international community seem to be unable or unwilling to act.

• In 2008, huge global imbalances and escalating speculation on the US real estate market led to the biggest economic crisis since the nineteen-thirties. Only the decisive action of states and central banks avoided a crash of the global financial system and the global economy. In 2010, the euro area was drawn into a debt crisis – caused by severe macroeconomic imbalances and speculation on a debtor default via CDSs against Greece.

• Also in Europe, cultural conflicts between our secular-enlightened model of society and religious-patriarchal or Islamist models of life are rising. What is at stake is nothing less than freedom, gender equality and the achievements of the emancipation of women in European states.

In order to successfully meet these challenges we need a European federation with substantial economic and political capabilities.

In 2011, Nova EUropa published a three-stage plan for the stabilisation of the euro and the democratisation of the Eurozone.Unlimited buying of government bonds of the member states of the euro area by the European Central Bank:

1. In September 2012, the Governing Council of the ECB decided that the ECB was open to unlimited buying of government bonds of euro area member states. The announcement itself led to falling interest rates and the Eurozone stabilised.

2. Establishment of a European Economic Federation by the euro area member states: Announcing the possible purchase of government bonds by the ECB was an effective emergency measure but not a sustainable solution. For this reason, a fundamental design fault of the monetary union needs to be eliminated: In the long run, a monetary union cannot work without a common economic, budgetary and tax policy. Therefore, Nova EUropa calls for the establishment of a real fiscal union by – at least a core of – the euro area (in any case Germany, France and Italy) – a European Economic Federation, governed by a European economic government, and controlled by a parliament. Member states of the euro area unwilling to give up their sovereignty would be required to leave the European Monetary Union.

3. Foundation of a sovereign European Republic: In a third step, at least core-states of the European Economic Federation (in any case Germany, France and Italy) shall establish a sovereign, federal state – the European Republic – with a directly elected president and a two-chamber parliament. In this way, Europe would achieve full capability to act – in economic as well as foreign and security matters. The European Republic as such would then be one member state of the European Unionand one member state of the European Economic Federation as well (if it is not fully transformed into the European Republic) taking the place of its constituent members. As a member state of the United Nations the European Republic would be a permanent member of the UN-Security Council taking the place of the French Republic.