This is no doubt a complex issue as it extends into multiple aspects of national law. 11 But if we do not want a transfer union, then we have to be consistent and establish an environment where other mechanisms can work. This means, first, advancing with the agenda of the new Commission President to establish a genuine Capital Markets Union in Europe.
And second, establishing a genuine Economic Union in parallel. If countries are to attract capital and benefit from financial risk-sharing, then it has to be attractive to invest there. And this can only be achieved if, over the medium-term, all countries have sufficient adjustment capacity and growth prospects. Yet even with full implementation of these Unions, we could still not call EMU complete.