German Chancellor Angela Merkel wants greater fiscal integration for the euro area. If only everyone could be more like Germany, everything would be fine! I can understand why Germany would like to dictate fiscal policy to profligate spenders, such as Greece. What about the obligations that go with it? A fiscal union would include a mechanism for fiscal transfers, such as those between the 50 U.S. states and Washington. For the foreseeable future, those transfers will be going from Germany to the peripheral countries.
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