The problem of fiscal union in the Eurozone is not as intractable as many think. There is an elegant solution. Actually, let me retract that, there is a chaotic, potentially contentious, precipitous, union breaking, gut wrenching solution. Which is quite nice.
What the Eurozone members’ require is disinterested, rational management of fiscal policy. Arguably, no country can separate fiscal policy from politics and special interests. There is another way.
The Germans will manage fiscal policy for Italy and vice versa. France will be paired with Spain, Netherlands with Belgium, Austria with Portugal, Greece with Finland, Slovakia with Slovenia and Ireland with Luxembourg. Hmmm, what do we do with Malta? Cyprus manages Estonia which manages Malta which manages Cyprus.
It will be lots of fun, reuniting old friends and lovers.
Threat of mutual mass destruction will keep everyone in line. No one has an incentive to do the other harm.
It will never happen but if ever there was the will for greater union, this would be an entertaining start.