The European Union has faced economic challenges due to financial crises, leading to the implementation of new economic governance measures. Austerity measures have helped with budget discipline but harmed growth and employment. The new economic governance framework aims to improve budgetary, macroeconomic, and financial supervision, but has weaknesses. It does not address key issues like fiscal union, a sufficient rescue mechanism, or mutualization of public debt. To solve the euro zone's problems, transferring sovereignty to a Financial Ministry is suggested, with responsibilities in fiscal and macroeconomic supervision and the issuance of joint eurobonds.