Europe's Future: Fiscal Harmony Unlikely Due to Heterogeneity and Competition.
The European Union is still diverse, but the question is whether policies should be independent, coordinated, or harmonized. The paper argues that full harmonization of fiscal policies is not needed due to cultural differences and tax competition. Instead, strengthening fiscal rules and joint responsibility is crucial for the EU's financial stability. The open coordination method is suggested as a balanced approach for the EU's future development.