„Europe has structural problems that require structural solutions. Even though this is not a popular view at the moment, we are convinced that the monetary union needs deeper integration. More particularly, it needs a sufficiently powerful European economic government.
We speak as German but also as EU citizens who are connected with other EU citizens in a community. This is no contradiction: it is in Germany’s self-interest to overcome fears about a transfer union and to stop dismissing any constructive proposal as an attempt to pull the money out of German pockets. (...)
The Maastricht Treaty assumed that common debt rules would solve the problem of the irresponsible building up of debt. Greece showed this to be a delusion. Therefore, it was right to toughen sovereign debt rules with the fiscal pact. But it is also true that the crisis would not have been prevented by the fiscal pact itself in countries like Spain and Ireland. The fiscal risks that piled up in those countries were ultimately caused by excessive private sector debt.
Whether the indebtedness is public or private, it becomes a problem for the monetary union only if private creditors do not write off their losses on their own account, but socialise them. But that is exactly what happened: the debts of financial institutions, and of banks in particular, were socialised. The banks were able to do so because they knew that their systemic importance would give the European taxpayer no choice but to save them.