Would Macron’s plan for fiscal union work?

Among the wide range of proposals for the EU put forward by French President Emmanuel Macron this week was the introduction of a euro-zone finance minister and a euro-zone budget. In principle, we think that this would be a good idea. Indeed, we have long argued that greater fiscal integration is needed. However, a common budget big enough to make a significant difference still seems a distant prospect. After all, many politicians in the core euro-zone countries are opposed to the idea, not least some of those in Germany who are likely to join Chancellor Angela Merkel in government.