The article discusses how the 2007-2008 financial crisis affected the European Economic and Monetary Union (EMU). It looks at whether the current division of responsibilities within EU institutions and member states is optimal during a crisis. The paper finds that the current setup limits policy options, leading to a focus on structural reforms and neglecting social aspects. This has weakened the social dimension of the European project, turning it into a process of adjusting to economic shocks. The imbalance in responsibilities could be corrected by giving Europe better social governance and adjustment tools.