GYORGY MATOLCSY: Governor, National Bank of Hungary.

Although the common bond issuance in the European Union officially has been adopted as a one-off measure, people speaking about a Hamiltonian moment nonetheless maintain that the genie has been released from the lamp and the emergency measures may consolidate as a regular part of the European toolkit. Historical examples abound, such as the large-scale fiscal programs during the Second World War, which were initially justified by war preparations and war-related expenditures but later became standard instruments. In addition, one can point out that no monetary union was operative in history without centralized fiscal policy, implying that centralized monetary policy with many national fiscal authorities is unsustainable.

In my view, the above arguments do not provide sufficient justification for speaking about a Hamiltonian moment. The case is very different from that in the United States 230 years ago. In Europe, the single currency was a political decision. The euro was created to fulfill the "European dream," born at the historical moment of the break-up of the Soviet Union and the unification of Germany, with the introduction of the common currency seen as the key to deeper integration.

However, it quickly became clear that the single European currency was basically designed for good times, even though it should have survived a series of crises. The common currency was built on shaky foundations. There is no common budget, no common finance minister, no banking union yet, and no proper dialogue on the dangers of a lack of an independent monetary policy. Member states are still too different in terms of culture, traditions, economic development, taxation, and...