Much like an earthquake exposes design flaws in a building’s construction, the financial crisis has clearly brought to light the dangerous cracks lurking in the structural framework of the monetary union. The cornerstones of the Maastricht framework include the concept of an independent central bank with the primary objective of safeguarding price stability, and national sovereignty in fiscal policy matters.
The framework assigns liability for and control over national finances to national governments. The framework sets out fundamental principles to ensure compliance with this agreement. Member states commit themselves to maintaining sound public finances; they are strictly prohibited from providing each other with financial assistance (no-bail-out rule), although some exceptions were allowed; and central banks are not permitted to finance governments.