Repairs at the national level have seen considerable progress, though there is still a long way to go. Like in a marathon, the second half of the course always feels tougher than the first – and one major challenge is to not give in to the growing reform fatigue. But at this point, the weaknesses in EMU’s architecture probably pose a more fundamental challenge.
The balance between liability and control has got out of kilter. We need to regain that balance if we are to put EMU on a more solid footing. Since a genuine fiscal union is not on the cards – and to me, it does not seem to be for the foreseeable future – we need to make the principle of individual responsibility work.