European Union adopts federal bargain to ensure economic and political stability.
The article "Federalism and European Union: A Political Economy Perspective" discusses how the European Union decided to create the Economic and Monetary Union (EMU) to protect European countries from economic instability. The author argues that only federal-like political and economic systems can ensure stability. By comparing EMU to other federations, the author suggests that EMU will only work if there are new ways to limit centrally imposed fiscal policies.
