And even the Finnish system of budgetary frameworks can and should be developed further, of course. I should add at this point that I do not see the financial support arrangements for Greece, Ireland, of Portugal as steps leading to a “transfer union”. Transfer union would mean oneway subsidies from some governments to cover other governemts’ deficits.
This would not be consistent with the underlying principles of the EU. As Mr. Trichet has put it, “it is fully recognised that this economic union must be one where countries that wisely follow a virtuous economic path are rewarded, and those that pursue unsustainable policies have to internalize the costs of their actions.” I fully endorse this view.