Some have suggested eurobonds or bigger funds. Consider a more targeted idea, from Alexander Hamilton, which is more consistent with Germany’s aim of combining fiscal union with discipline. As the new US Treasury secretary, Hamilton assumed the revolutionary war debts of the US states – but only once. After that, states’ debts have been subject to market discipline. US states can – and did – default. Germany’s aim should be to keep eurozone states subject to market discipline, on top of the procedures of a fiscal pact.
—Robert Zoellick, writing in the FT
