As it is inter-governmental and relies on voluntary commitments, there is much scope to selectively implement certain reforms. This was the flaw of the Lisbon Agenda and it should not be repeated. Political ownership by the Heads of State or Government is therefore critical to ensure that all euro area countries set ambitious commitments and rigorously apply them.
Over time, Member States could demonstrate their commitment to deep structural reform by incorporating the key elements of the Euro Plus Pact into the legislative framework on economic governance, and therefore giving them binding legal force. Strengthening policy co-ordination creates solidarity and substitutes for the fact that the EU is a political community without a nation.