For  3  This term was first used by Joseph S. Nye, Jr., who focused on the role of the culture or values of a country in the area of international politics and calls this soft power as opposed to hard power such as military power.
[…]” Article 122.2, Treaty on the Functioning of the European Union. In addition, the proposals do not sufficiently counteract moral hazard. The recent Franco-German proposal takes some of these issues into account, for example by suggesting that the euro area budget only be made available to countries that fully respect the European framework, including the fiscal rules.