However, we must not forget that much remains to be done on the three other construction sites. In the longer term, it seems appropriate to reflect on the limits of the current framework in which we are evolving. A Treaty change could enlarge our horizon of possibilities. As regards fiscal union, the Four Presidents’ Report mentioned the need for true oversight over national budgets.
The consequences of misguided fiscal policies in a monetary union are too severe to remain self-policed. Beyond the recent reform of fiscal governance, the euro area centre could be endowed with veto rights over those national budgets that violate the European rules.