The report proposes a vision for a stable and prosperous EMU based on four essential
§ An integrated financial framework to ensure financial stability in particular in the euro
area and minimise the cost of bank failures to European citizens. Such a framework
elevates responsibility for supervision to the European level, and provides for common
mechanisms to resolve banks and guarantee customer deposits.
§ An integrated budgetary framework to ensure sound fiscal policy making at the
national and European levels, encompassing coordination, joint decision-making,
greater enforcement and commensurate steps towards common debt issuance. This
framework could include also different forms of fiscal solidarity.
§ An integrated economic policy framework which has sufficient mechanisms to ensure
that national and European policies are in place that promote sustainable growth,
employment and competitiveness, and are compatible with the smooth functioning of
§ Ensuring the necessary democratic legitimacy and accountability of decision-making
within the EMU, based on the joint exercise of sovereignty for common policies and
These four building blocks offer a coherent and complete architecture that will have to be
put in place over the next decade. All four elements are necessary for long-term stability
and prosperity in the EMU and will require a lot of further work, including possible
changes to the EU treaties at some point in time.