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He believes Scotland must move to fiscal autonomy as an intermediary stage on the road to full independence.
With unemployment at 9.4 percent and the economy constrained by lack of demand, it would be heartless and counterproductive to move to fiscal austerity in 2011.
Yet a move to fiscal, political and banking union has the best chance, in the short to medium term, of staving off the economic collapse that would almost certainly bring defeat for the Tories at the next election.
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But it is not a move to wholesale fiscal federalism.
"I recognise that even if there was an agreement to move to full fiscal autonomy, which there is not, that would take time to do," she said.
Only a move to full fiscal union, with the northern countries subsidising the periphery, or unlimited bond purchases by the ECB, seems likely to satisfy investors.
Sturgeon told the Andrew Marr Show on BBC1: "Our manifesto set out very clearly that we would want to move to full fiscal responsibility.
In the past year Tory leaders have become more conciliatory.Gone is the talk of taking advantage of the euro crisis, and the move to closer fiscal union that this necessitates, to advance British demands for powers to be repatriated.
Let us simply move to a fiscal union in which rich countries like Germany subsidise the rest.The trouble with this proposition is that America has a tax and welfare system that is also national.
A move to impose fiscal austerity was rejected, in 1989, with a mass revolt and countrywide looting a paroxysm known as the Caracazo which was put down by the Army at a cost of hundreds, perhaps thousands, of lives.
And special props to Barry for going after the all-too-prevalent belief among VSPs that wisdom always consists in dismissing short-run concerns: If these three urgent tasks are completed, there will be plenty of time – and much time will be needed – to contemplate radical changes like new budgetary rules, harmonization of other national policies, and a move to full fiscal union.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com