Either we proceed towards deeper political integration – a fiscal union, say – or we develop the existing framework further and bolster the individual national responsibility of the individual member states as a constitutive feature of monetary union. However, a fiscal union must not simply mean extending mutualised liability, because that would merely be a transfer union.
A fiscal union that is worthy of the name would instead require member states to transfer national sovereignty to the community level, say by giving the community the necessary right to intervene in the event of unsound public finances. Blending mutualised liability with decentralised decision-making powers on debt would be the wrong way forward.