As a case in point, banks could long rely on being bailed out with taxpayers’ money if they ran into difficulties. 6  BIS central bankers’ speeches  If we are to maintain the balance between control and liability, we essentially need to opt for one of two paths towards a more stable monetary union framework.
Either we proceed towards deeper political integration – a fiscal union, say – or we develop the existing framework further and bolster the individual national responsibility of the individual member states as a constitutive feature of monetary union. However, a fiscal union must not simply mean extending mutualised liability, because that would merely be a transfer union.