Which (Fiscal) Soul for Europe?

While a fully fledged fiscal union exists in the US, no similar entity has been developed in the\r\neurozone, clear proof of the incompleteness of the Economic and Monetary Union, which leads to\r\na condition of fragility. Currently, the quest for a deep regime change in Europe in the realm of\r\nfiscal policy management seems to have disappeared from sight. Politicians are still debating\r\nwhether the (possible) centralization of fiscal policy requires risk reduction rather than risk sharing\r\nas a pre-condition. The paper is an updated survey of the debate on the role of and the need\r\nfor a fiscal union in the eurozone. The ultimate conclusion is that the European project is still in\r\ndisarray, while populist forces are acquiring consensus in (almost) every country. The completion\r\nof the EMU’s deepening phase – particularly the orderly maintenance of the common currency –\r\nis at risk.