Critics say the problem stems from a lack of centralised control over national fiscal policies, which today are jealously guarded areas of sovereignty.

In 2011 Delors said the crisis facing the euro required member states either to accept greater economic cooperation or a transfer of more national powers to the European Union's centre.

The conspiracy theorist in me wants to say that this was their plan all along.

Meanwhile, the misanthropist is trying to decide if less sovereignty would be a good or bad thing.

MizuFlow:

I think I would agree that this probably should have been the next obvious step in their plan which is coming decades too late in implementation.

I read an article somewhere that the Optimum Currency Area model (eg. the EU) is supposed to have both monetary and fiscal union to work as it theoretically should. However, I can't even begin to imagine how fiscal union like this is gonna happen in such a culturally and politically diverse continent like Europe. And if they were supposed to do it all along, why so late?

The United States is supposed to be an example of the OCA thing working, but Europe is a different beast entirely. I'm no expert, but I think the EU isn't looking too hot for the future.

posted 3196 days ago