The Director of the European Stability Mechanism (ESM), Klaus Regling, believes that total budgetary union, manifested in large fiscal transfers from the richer countries to poorer ones, is not the best way to deepen and stabilise the euro zone.
“On fiscal issues, let me say that the EU does not need a full fiscal union, with larger transfers between countries. The EU budget already allows for significant transfers to poorer countries, to promote real convergence. These transfers amount to...