The European Union needs to reform its institutions to have a stronger common economic policy. Uncoordinated government spending in member states has caused budget deficits and threats to economic stability. The EU is working on new economic governance to boost confidence in the economy. Reforms are expected to give EU institutions more power to influence common policies. The new Fiscal Treaty and fiscal union within the EU are seen as positive steps. The history of the EU and other monetary unions shows that less integrated unions are more volatile.