Europe's Empty Fiscal Compact

CAMBRIDGE â?? The driving force of Europeâ??s economic policy is the â??European projectâ? of political integration. That goal is reflected in the European Unionâ??s current focus on creating a â??fiscal compact,â? which would constitutionalize member statesâ?? commitment to supposedly inviolable deficit ceilings. Unfortunately, the compact is likely to be another example of Europeâ??s subordination of economic reality to politiciansâ?? desire for bragging rights about progress toward â??ever closer union.â?