A European transfer union: How large, how powerful, how expensive?

Europe on the way to becoming a transfer union? The euro rescue packages in 2010 and 2011 - and the ECB’s involvement in the crisis - are reputed to be the forerunners of a transfer union between the euro countries. However, for the time being these are mainly government guarantees, the failure of which cannot be taken for granted. The EU is even further away from systematic financial equalisation of the euro countries. Nevertheless, continuing macroeconomic tensions could increase the need for transfers - and further inflame political tensions.