To help stem the crisis, a growing number of European officials are calling for a truly European Union-wide solution to the eurozone’s woes. Even some euroskeptics now agree that the common currency needs to be supported by common fiscal policies that prevent member states from accumulating too much debt and requiring bailouts.
But that hasn't dampened calls from critics who worry that centralizing EU fiscal policy would impinge on national sovereignty – and possibly even worsen the crisis. Such calls for "more Europe," they say, are all-too-typical – and deeply flawed.
“That’s always the answer in Brussels,” says Dan Hannan, a member of Britain’s eurosceptic governing Conservative Party and a British member of the European Parliament. “Whatever the question is, the answer is ‘more Europe.’ If there’s a rainy day in Eindhoven, the answer is ‘more Europe.’ The problem with [an EU-wide fiscal policy] is, you cannot jam countries with wildly divergent needs into the same exchange rates and interest rates.”
While the euro is the de-facto EU currency, each of the eurozone’s seventeen constituent nation states sets its own fiscal policy.