Contours of the fiscal union

View: Tighter Union and Stability Bonds Could Save Euro

It’s been two years since the European Union’s grand experiment with integration started coming apart at the seams. One plan after another to knit the alliance back together has been tried, and failed. Now comes news that euro-area leaders are considering a tighter fiscal union and the issuance of jointly backed euro bonds.
It’s about time. Setting up a centralized fiscal authority would, in essence, give the euro area a do-over: It would clarify and strengthen the conditions a country must meet to win the collective backing of all the others for its debts.
So how do we begin?
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