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BY MIKKEL NOEL LANZKY
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Will the European Union need a new treaty to handle the long term consequences of the Euro crisis? As a Greek default looks more inevitable by the day, European leaders turn their attention to the future of the common currency.

European Commission President Jose Manuel Barroso formly believes the Euro has a future, saying:

“No one is seriously proposing to cut back on our integration process. On the contrary, the discussion is, ‘How far can we go now? Do we need a treaty to go further? What can we do to reinforce the governance of the Euro zone?’” (EUX.tv)

German Chancellor Angela Merkel and UK Finance Minister George Osborne agree with Barroso. Both have said a new treaty governing the Euro is the next logical step. Such a treaty would include strengthened central control over financial policy, stricter deficit and spending rules, and harsher sanctions for states that don’t meet requirements. However, the road to a new treaty will be paved with obstacles.

One of those potential obstacles -- the UK. The Telegraph writes:

“How should Britain react to ‘ever closer union’? By staying well away, is the obvious answer […] The idea that Britain should take the opportunity to reassess its relationship with the Union appears to be getting an increasingly sympathetic hearing.”

Others believe that further European integration is the only way to go forward. Writing in the Greek English language newspaper Kathimerini, economic policy analysts with the think tank European Policy Centre made this comment:

“Either the eurozone moves toward a fully functioning economic and monetary union (EMU) or one crisis will follow the other until maintaining the common currency becomes untenable. Some leading politicians are finally realizing and publicly declaring that ‘more Europe’ is the only adequate answer.”

Formalized talks about a new treaty are not likely to start this year and will likely carry on into 2014 when the EU Council presidency passes to Greece. If Greece is dropped from the Euro, a Greek presidency could halt the project of a new treaty.

As for now, maybe the European leaders should just keep their eyes focused on solving the current crises before thinking long term. Barry Eichengreen writes in Project Syndicate:

“Europe doesn’t have months, much less years, to resolve its crisis. At this point, it has only days to avert the worst. It is critical that leaders distinguish what must be done now from what can be left for later.”

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Transcript by Newsy.