Mario Draghi on the path to fiscal union in the euro zone
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The euro zone has survived without fiscal union so far due to ECB policies and common shocks requiring joint action rather than cross-border transfers.
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Fiscal union is now needed to finance shared goals like defense, climate change, and technology transitions.
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The EU's current fiscal rules are neither strict nor flexible enough and should be reformed.
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More fiscal powers should be transferred to the EU level alongside stricter national fiscal rules.
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This will require pooled sovereignty and treaty changes, which citizens may now accept given new geopolitical realities.