Figure 2: Neutral interest rate estimates % 9 8 7  % Suite of neutral interest rate estimates Official Cash Rate Suite (mean)  9 8 7  6  6  5  5  4  4  3  3  2  2  1  1  0 2006 2008 Source: RBNZ.
They can only result from further political integration; they cannot precede it. Likewise, and importantly, a fiscal union can only come about once the participating countries have successfully restored domestic fiscal sustainability and solidified the conditions for long-term growth. Joint debt issuance cannot be a substitute for putting national fiscal houses in order and restoring competitiveness.