The fiscal framework  Although the role fiscal adjustment mechanisms play in absorbing asymmetric shocks appears to be limited, fiscal policy remains at the centre of the debate on the euro area’s future development. This is related to the incentives for running up debt mentioned earlier, created by the combination of a single monetary policy and national fiscal policies.
As long as fiscal policies remain in national responsibility, the member states also need to bear the consequences of their policies themselves. Otherwise, incentives will be created to engage in unsound practices. The rescue measures taken during the crisis prevented any further escalation of the crisis and stabilised the euro area in the short term.