Europe needs fiscal union

The deal on more budgetary discipline agreed by Europe's heads of state and government on Friday in Brussels paves the way for a true fiscal union, writes the left-liberal daily Népszabadság: "The French are happy with the pact because it deprives the EU institutions, the Commission and the European Parliament of certain powers. But the pact is also to the Germans' liking because it focuses on budgetary discipline, foresees the anchoring of a balanced budget in the treaties and sanctions for anyone who breaks the new rules. Moreover the national budgets must receive the EU's approval before they are passed into law. This encroaches not only on national sovereignty but also raises economic issues. However the monetary union can only survive the crisis by becoming a fiscal union. This means that the EU states that are willing to cooperate have the potential to create a new single market, a new common financial supervisory authority and a new finance centre as well as harmonised social and tax policies."

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