So the European fiscal framework should allow for more coordination of national fiscal policies and more flexibility to deal with large shocks. In order for these two features to work, we need a third one. A monetary union with multiple budgetary authorities requires sustainable national debt levels.
Therefore, an enhanced fiscal framework should have robust and credible rules that make sure national governments keep their debt levels in check. Not only should member states build up sufficient buffers in good times. They should also increase potential economic growth that ultimately generates the debt repayment capacity. Economic life gets so much easier with half a percentage point more productivity growth!