Establishing a European fiscal union would not by any means require a complete centralisation of fiscal policy (including policies governing revenue and expenditure). In particular, the principle of subsidiarity implies that wide-ranging competences should remain at national level in order to ensure that the arrangements reflect the preferences of the individual countries’ citizens as closely as possible.
In my view, enshrining strict deficit and debt limits for national budgets in EU legislation is pivotal to achieving a stable fiscal union and reliably shielding the Eurosystem’s single monetary policy from unsound public finances.