European Commission President Ursula von der Leyen is producing empty phrases, Former Greek Finance Minister Yanis Varoufakis said, arguing Europe must choose between federalisation or dissolution.
"We have two choices - we are at a fork in the road. We can move in the direction of federation or we can disband the euro," Varoufakis told Euronews' Europe Today programme on Thursday.
The economist said EU leaders were choosing neither option and "falling in the vacuum in between".
Varoufakis blamed Europe's problems on a monetary union lacking fiscal and investment structures, claiming the continent has been starved of investment for two decades.
"We have federal money and this is our tragedy. We have a great central bank, a monolith of a central bank, and we have 20 treasuries that can't really rely on it," he said.
Varoufakis said EU leaders "spectacularly fail to talk about the one thing they should be talking about" regarding eurobonds — who would issue the debt.
Eurobonds debate intensifies
His comments came as EU leaders gather on Thursday at Alden Biesen castle in Belgium for an informal summit on competitiveness, with eurobonds emerging as a key dividing line.
French President Emmanuel Macron this week called for "future-oriented eurobonds" to finance strategic projects, saying global markets were seeking alternatives to the US dollar.
German Chancellor Friedrich Merz and Italian Prime Minister Giorgia Meloni are expected to present a joint economic doctrine focused on deregulation, while the Netherlands, Nordic countries and Baltic states oppose "Buy European" preferences they view as protectionism.
Former Italian Prime Ministers Mario Draghi and Enrico Letta joined Thursday discussions to share perspectives on European competitiveness.
The informal summit aims to shape proposals for a formal EU leaders' meeting in late March.
