The markets already consider the eurozone as a whole

For the financial markets, there is not question: the eurozone is not 17 countries with the same currencies; but rather one big economy with huge regional disparities, and the advantage of being able to play each of those region against each other.

That is why Standard & Poor’s latest move was to downgrade nine eurozone countries and the European Fund for Financial Stability: it is the global economy of the eurozone that is under pressure – even if specific region (like Germany) are much more likely to make it thru the crisis.

Is it to say that fusing the 17 economies into a true financial and economic federation would be to do what the markets want ? Maybe, but that would also be matching the institutional reality to what is, in practice, already a fact.

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