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The euro area is a special construct. 19 countries share a common currency, but responsibility for their economic and fiscal policies still lies in national hands.
Convergence in these areas is, however, crucial for the success of Monetary Union. So it is imperative for all Member States to adhere to the common rules.
The resilience of the euro hinges on the implementation of the necessary economic and fiscal reforms. And further steps must be taken to boost private and public risk-sharing.
At the same time, as Europe progress towards completing Economic and Monetary Union, we should keep in mind two principles that are at the heart of effective policy in a democratic society.
First, liability and control must be aligned, with important decisions taken only by those who will bear their consequences.
Second, the discharge of democratic control must lie at the level at which policy decisions are taken.
Given the current state of our Economic and Monetary Union, further efforts to deepen it through political and economic convergence are clearly indispensable.