Secondly, Partner states may no longer be able to enact policies to meet their specific needs and interests if such policies are in conflict with regional initiatives. For instance, use of fiscal or monetary policy to pursue a specific country development agenda. Thirdly, it may be difficult for national governments to create and implement policies based on their own particular needs.
In this regard, fiscal rules could limit a country’s ability to increase public debt to finance critical infrastructure projects or social safety nets. But one of the demonstrated challenges is the problem associated with the sovereign debt crisis in the Euro Zone. Dissimilarities in current debt levels and structure also pose a threat.