The change has to be profound given the lack of enforcement of previous commitments, such as those expressed in the 1997 Stability and Growth Pact, which were later even relaxed.
The sustainability of a fiscal union may eventually require letting a particular national government fail if it becomes insolvent, as was the case in the history of the state governments of the United States.1 These and other challenges will have to be faced in order to normalize the operation of the EMU and enhance its growth potential.