Agreement on the revision of the stability pact is a limited but real step forward towards governance of EMU (Economic and Monetary Union) through better balance between its two arms: the monetary arm, a process that has been running smoothly and assuredly since the birth of the euro under the guidance of the European Central Bank (ECB), and the ill-assured and hesitant economic arm. It is true that the pact covers only one component of economic policy: budgetary issues. But it is...