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The German electoral calendar implies some delay and great caution as Europe moves to complement fiscal discipline with fiscal solidarity – but the direction of travel is quite clear.
Different forms of fiscal solidarity could also be envisaged". Full fiscal union, the paper says, will ultimately require what is tantamount to a eurozone finance ministry – "the development at the euro area level of a fiscal body, such as a treasury office".
And France will find there the start of fiscal solidarity that it has been calling for for quite some time.
The "Hometown" seven are old college chums who have traded their alleged political and social idealism of the 1960s for various degrees of fiscal solidarity in the 1980s.
For small peripheral European nations, the threat of sovereign insolvency is therefore a real one, unless EU fiscal solidarity can be relied upon to bail them out.
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Germany resents being told to hurry up because the law does not matter or is trumped by politics.Touring the halls of German power, the word "culture" comes up a lot, especially as in how European cultures differ over monetary stability, fiscal discipline and solidarity.
Others want even more fiscal solidity in exchange for Germany's solidarity.
Similarly, calls for "solidarity" (or fiscal transfers) run straight into concerns over moral hazard.
There is something for every taste: Scandinavian standards of living, German fiscal rigour, French-style "solidarity" transfers, Luxembourg-like lofe of bank secrecy, Irish tax competition and a British cussedness about the EU.
Putting their affinity for, say, fiscal conservatism above racial solidarity empowers their humanism from the perspective of these men.
Is this a case of Hugo Chávez, Venezuela's tub-thumping president, putting political solidarity ahead of fiscal prudence?
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Justyna Jupowicz-Kozak
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