This paper studies whether a monetary union can be managed solely by a rule-based approach. The Five Presidents' Report of the European Union rejects this idea. It suggests a centralisation of powers. We analyse the philosophy of policy rules from the vantage point of the German economic school...

The long-term fiscal and economic damage of eurobonds in a rule-based fiscal architecture – as history corroborates – would be greater than the historical challenge of the coronavirus pandemic, unless there is a political union in Europe.