This paper examines the sources of current conflict within the EU and the EMU. The topics discussed include the recent ECB policy of bond buying (the OMT policy), the attempts to advance the "European Project" of stronger political union (the fiscal compact, the banking union, and the proposals for budget supervision). Contrary to the claims of the European leadership, the progress that has been made has been by individual countries and not by coordinated action. The special problems of France and Britain are also discussed.
free text keywords: Economics and Econometrics, Banking union, Fiscal union, Political union, Economics, European union, media_common.cataloged_instance, media_common, Economic policy, European debt crisis, Single Euro Payments Area, Financial regulation, European integration, jel:F0, jel:F02, jel:F15, jel:F3, jel:F4, jel:F5