However, such a step would depend on the countries of the euro area transferring national sovereignty to the European level – for example, by giving the European level the right to intervene in the event of unsound public finances. Giving up sovereignty in this way would be a radical change and require wide-ranging legislative changes nationally and at the European level.
More than anything, such changes would need the support not only of policymakers but also of the general public. And on this point we need to be realistic. I cannot identify any willingness to do that at present – not in Germany or in any other country of the euro area.