Let me now turn to my final point, which is that institutional arrangements and democratic control need to evolve in lock-step with progress in the economic, fiscal and financial unions to meet the test of constitutionality. As European policies assume a stronger role over time, confusion over the assignment of responsibilities and accountability arrangements threatens efficiency and legitimacy.
But greater control at EU level is important for two reasons. First, it would be a true reflection of a functioning democracy where sovereignty either has been fully transferred to EU level (in the case of monetary policy, for example) or it involves both national and EU levels (as with prudential policies, for instance).