The Future of Europe: A Stronger Union or a Smaller One?

Time has just published my story on the future of Europe.

It may be called the European Union, but at least part of that name is being called into question. The market convulsions of the past week are clearly about short-term concerns, about the balance sheets of countries like Italy, Spain and even France. But they’re also about a problem with a more distant horizon: Does the E.U. still make sense in its current form?

As long as that question remains unanswered, uncertainty is bound to continue. Short-term measures, like the propping up of Spanish and Italian bonds by the European Central Bank “are quick fixes that smooth things over the short term,” says Stephen King, chief economist at HSBC in London. “But they don’t answer the questions the markets are asking: What are the political and fiscal arrangements that would create stability in the future?

Read the rest.