Is the euro zone doomed to “hidden” federalism?

The euro zone’s significant and growing heterogeneity will lead to its downfall if a sufficient element of federalism is not introduced to make this heterogeneity acceptable. The normal way to introduce federalism would be to put in place a federal budget for the euro zone. But it is well known that such a budget is rejected by a large number of countries. To survive, the euro zone has therefore had to introduce a “hidden” federalism: Since 2014, this has taken the form of a highly expansionary monetary policy: very low interest rates are a form of hidden federalism insofar as they occasion an income transfer from the rich lending countries (Germany, the Netherlands) to the peripheral borrowing countries. This transfer is equivalent to one that would be made under a federal system; After the Juncker plan, hidden federalism will take the form of public investments in the energy transition and new technologies in Europe , using the savings of the countries with savings surpluses. Faced with the impossibility of explicit federalism, this hidden federalism is clearly keeping the euro zone together .