More than anything, such changes would need the support not only of policymakers but also of the general public. And on this point we need to be realistic. I cannot identify any willingness to do that at present – not in Germany or in any other country of the euro area.
This means that, for the foreseeable future, control of fiscal policy in Europe will remain at the national level. Thus, in this area, deeper integration still lies beyond the horizon. But if the current state of lopsided integration prevails, the national level must assume liability for its policies. That would mean strengthening the current set of rules on borrowing: the Stability and Growth Pact.