A N A LY S I S ECONOMY AND FINANCE CRISIS AND REFORM OF THE EURO ZONE. WHY DO WE DISAGREE? A reflection paper on the North–South divide Andrea Boitani, Roberto Tamborini March 2020 • There is general agreement that reforms of the euro-zone architecture are necessary, ide­ally aimed at fostering further integration on the grounds of (at least) economic policy and governance. • The narrative of the crisis is de­cisive. Suspicion runs high and mutual trust runs low between the southern and the northern European euro-zone coun­tries. And neither the northern euro-zone countries nor the southern euro-zone countries can account for the full story of the euro zone’s malaise, not to mention possible ways out. • Better rules are not enough, new common institutions are necessary. Reform of the euro zone should be based on a confederal and cooperative model.