spiegel.de Is this inevitable if the monetary union is to survive? Would this have happened without the current crisis? Personally I think ever closer fiscal and political union is an inevitable outcome of monetary union. What model this will take I don't know - probably something like the USA where there are local, state and federal taxes (as I understand it) and each state has some discretion on rates and so forth. Each state may be given bands within which it can set its own taxes. The other unknown is how long this will take to negotiate and implement - this will require new treaties, referendums etc. Thoughts?