Allow me to make one preliminary remark before I move on to discuss the individual aspects of a possible fiscal union in greater detail. “Fiscal union” is a difficult term to pin down and can take a number of forms. Provided it is adequately structured, a fiscal union can prove to be the cornerstone of a coherent institutional framework for the monetary union.
However, even such an ambitious project as a fiscal union can by no means solve the problems that many countries are facing today: high unemployment and a lack of competitiveness are not going to disappear overnight.