This session addresses challenges to macroeconomic adjustment in the Eurozone both as source for the emergence of the crisis and as constraints to prospective solutions. Much research has recently focused on these aspects of the euro crisis (among others Streeck 2015, Johnston/Regan 2016). This panel attempts to bridge this complex field by offering analyses across time and space in European monetary integration. The contributors of this session complement each other in their respective research interest, but also provide distinctly different views, which should make for healthy debate: Lucio Baccaro traces the origins of the euro crisis back to German wage moderation and its unique role in the shift in competitiveness in favor of Germany. He argues that German wages and not productivity differentials prompted the macroeconomic imbalances that led Europe into crisis. Sofia Perez takes up the clash of competing explanations of the euro crisis. Her argument points to the role of financial markets and capital flows both as causes for the crisis and challenge to its overcoming. Fritz Scharpf points to the difficulties of finding solutions to the adjustment problem that share the burden symmetrically between the North and the South. Alexander Spielau, in agreement, traces the adjustment difficulties back to the time of the Euro’s predecessor, the European Monetary System. He points to institutional constraints that led to austerity-inspired policies in the past and which have been replicated in EMU. They render an alternative to austerity in the form of Keynesian reflation unrealistic.