2.1  A fiscal union  Benoît Cœuré and Emmanuel Macron have made proposals that aim at creating a fiscal union – that is, centralised decision-making in the fiscal realm, combined with fiscal transfers or mutual liability in the form of Eurobonds. A genuine fiscal union could indeed restore the balance between control and liability.
If decision-making is shifted from the national to the European level, the deficit bias of the individual member states inherent in the current set-up of EMU would be mitigated. While this, in itself, is not a guarantee for sound fiscal policy choices, this framework is at least consistent with the concept of mutual liability. What kind of sovereignty shift are we talking about?