The former Greek finance minister stated on the Euronews program 'Europe Today' that the EU is at a crossroads between federalization and disintegration, citing the lack of necessary fiscal and investment structures as the reason for disintegration.
"We have two options, that is, we are at a crossroads. Either we move towards federalization or towards the disintegration of the eurozone," Varoufakis said on Thursday in an interview with the Euronews program 'Europe Today'.
According to the Greek economist, EU leaders are not choosing either option and are "falling into an intermediate vacuum".
Varoufakis blamed the bloc's problems on the currency union, which, he said, lacks the necessary fiscal and investment structures. Our interlocutor believes that the EU has been experiencing an investment drought for two decades and that "deregulating is like rearranging chairs on the Titanic".
"We have federal money, and that is our tragedy. We have a strong central bank, a monolithic central bank, and 20 treasuries that cannot actually rely on it," he said.
Varoufakis also expressed his bewilderment that EU leaders, while discussing eurobonds, "do not talk about the most important thing" - who will issue the debt.
The debate on eurobonds intensifies
His comments came at a time when leaders of the bloc are holding an informal summit at Alden Biesen Castle in Limburg province, Belgium, focused on competitiveness. It is known that a key item on the agenda, but also a contentious one, is the issue of eurobonds.
French President Emmanuel Macron this week called for the issuance of "prospective eurobonds" to finance strategic projects, stating that global markets are seeking an alternative to the US dollar.
German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni are expected to present a joint economic doctrine focused on deregulation, while the Netherlands, Scandinavian countries, and the Baltic states oppose the 'Buy European' strategy, which they consider protectionist.
Former Italian Prime Ministers Mario Draghi and Enrico Letta joined the discussions on Thursday to share their views on European competitiveness.
The aim of the informal summit is to develop a list of proposals for the official meeting of EU member state leaders at the end of March.
