Also, the ECB needs stable banks to be able to implement its monetary policy successfully. Banking union will not be achieved by mutualising risks. On the contrary, banking union reduces risks for taxpayers. Our common future cannot be found in the past. The world has changed too much in recent decades to go back. None of our countries are strong enough to survive alone.
The euro area needs solidarity mechanisms for extreme events that are out of reach of national policies. But beyond that there is no strong case for further fiscal centralisation. Fiscal discipline starts at home. Governments have to take responsibility for delivering sound budgetary policies. Germany also has challenges to confront to maintain its economic performance.