A euro area fiscal capacity with own resources managed at the central level could undoubtedly do much more, in particular to pursue union-wide macroeconomic stabilisation goals, by offering funding to member countries hit by external shocks for purposes that would otherwise remain unfunded.
Public investment funding offers a good example, when looking at what crisis-hit euro area countries did in the earlier years of this decade. There can be no question that such a pooling of resources requires sufficient economic convergence among participating countries and effective borrowing constraints at the Member State level. This begs the question of how to design this convergence process.