4  Two paths to a stable monetary union  A stable financial system, then, is a cornerstone of a stable monetary union. Yet to get to the heart of the problems, European Monetary Union itself needs to be reformed.
Essentially, there are two paths to a stable monetary union: the first is by strengthening the institutional framework currently in place – a strengthening that must go well beyond what has been achieved to date; the second path lies in centralising fiscal policy – in other words: fiscal union.