Monetary reform alone will not bring prosperity to euroland. That will also require breaking with the neo-liberal approach to labour markets and macroeconomic policy. However, monetary reform is a necessary ingredient and absent such reform euroland faces stagnation and protracted high unemployment. Moreover, some financially weaker member countries may be forced to exit the euro because of financial market pressures or domestic political discontent. Either way, this could have potentially devastating global economic consequences, which means all countries have an interest in EMU reform.