ROME -- The Italian government is proposing a new form of "risk sharing" in the eurozone. A European Unemployment Insurance scheme is an innovative form of "risk sharing" that can be supported by both progressive liberals and pro-market conservatives throughout Europe.
At the Council on the Future of Europe, the dominant note was of nervousness at the state of Spain's financial system, combined with resolve to rally German opinion behind greater fiscal coordination and debt mutualization.
These issues doubtlessly need to be addressed, but what's notable is the sea change in the conversation. Ideas that were once off the table are now being taken up by EU governments and organizations and Euro pundits. The austerity discourse no longer dominates. Why?