Although NGEU is a temporary instrument, it signals a firm political commitment to protect the cohesion of the European Union at all times. As such, historians may later say that NGEU was a first step towards a fiscal union by creating tools at European level that allow for public risk-sharing, fixing a flaw in the original EMU construction.
How monetary policy can deal with fragmentation in the euro area Yet, while those fundamental forces tend to strengthen the resilience of the euro area, monetary policy normalisation is taking place in challenging economic circumstances.