The director general of the bailout fund of the eurozone (ESM), Klaus Regling, does not believe that the zone needs full fiscal union. "The euro area works well, and there is no need for a full political nor a full fiscal union", he said at a conference held by weekly magazine The Economist in Cyprus, on Tuesday 1 November.
"The one problem the EMU still faces is the low degree with which asymmetric economic shocks are shared between countries", Regling went on to explain.
He believes that...