If we look at the discontent about “ever closer union,” it appears as if this option is currently a political non-starter. However, another way for the European order to ensure synchronicity between actions and liability for their consequences is that these consequences are borne where the vast majority of scope for action is located: by national decision-makers.
This means that they need to take responsibility for their actions and have convincing incentives to eliminate the structural problems. I would like to illustrate this now by citing two topical areas of financial reform: first, sovereign debt, and second, European deposit insurance. Both reforms are related to the nexus between sovereigns and their domestic banks.