BIS central bankers’ speeches  5  If common debt were matched by common control, incentives could be aligned. But this would require a quantum leap in terms of ceding sovereignty to the European level, a leap neither the electorates nor the governments of the member states seem willing to take.
If a true fiscal union that requires extensive changes to the European Treaties is not on the cards, then we need to take the second avenue. This avenue implies enhancing the original Maastricht framework that is based on the principle of individual responsibility. This principle requires that sovereigns, banks and investors bear the consequences of their decisions.