The level of additional fiscal integration required may prove daunting and require considerable time to achieve.
Both also urge fiscal integration within the euro zone, as well as the introduction of Eurobonds.
But since the likely solution involves greater political and fiscal integration, it could become harder to join later.
The euro's design was flawed, without fiscal integration or a central bank to act as a lender of last resort.
So fiscal integration is being pushed not to preserve freedom and a new nation, but to save a failing currency.
If these imbalances persist and there is resistance to greater fiscal integration, greater labor mobility, and more private sector flexibility, the E.
Questions also covered the 2011 Budget, tax avoidance and evasion, fiscal integration in the eurozone, economic growth and the size of the UK deficit.
Investors were also waiting for details from the European Union summit in Brussels, where leaders are discussing fiscal integration and the co-ordination of banking systems.
That may be too high, but the comparison provides a rough estimate of the order of change in fiscal integration required to deliver any meaningful impact.
One is greater fiscal integration, including a joint fiscal authority, the issuing of common bonds, and the ability to make fiscal transfers to regions hit disproportionately hard by recession.
For George Osborne, this underlines one of his themes of recent days - that the eurozone countries need to get their act together, demonstrating their "commitment to greater fiscal integration".
Baroness Williams said fiscal integration - such as tax co-operation between eurozone countries - was now likely and it would require "a substantial new treaty" or amendment to the Lisbon Treaty.
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In December, the UK prime minister blocked the idea of changes to EU treaties to bring about closer fiscal integration within the eurozone, saying the move was not in Britain's interests.
Greater fiscal integration, even if achieved, would be insufficient.
The new measures, however, created much needed fiscal integration.
FORBES: Currencies, Credit Ratings and the Compact: Affairs of States
Foreign office sources stressed that fiscal integration by eurozone countries would not be seen as a transfer of power from the UK to the EU and so would not trigger a referendum.
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Beyond the possibility of ECB liquidity, the summit could also surprise by addressing necessary, long-term measures toward fiscal integration which are a precondition to give peripheral bond markets and growth a chance to stabilize.
But Tory MPs have said negotiations on amending EU treaties to allow for closer fiscal integration among eurozone members could start as early as next month and the UK must be prepared for this.
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In terms of the major negotiated tenets of the compact, Germany bargained for fiscal integration and conceded in regards to private creditors being involved in debt reduction along with their desire for a new treaty.
FORBES: Currencies, Credit Ratings and the Compact: Affairs of States
But the government says that closer fiscal integration in the eurozone is in Britain's interests and the Conservatives' coalition agreement with the Lib Dems says Britain will remain "a positive participant in the European Union".
BBC: Lib Dem conference: Michael Moore slams Tory MPs EU bid
But that would require greater fiscal integration.
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He doesn't have to think about how 17 governments will react to the level of European fiscal integration that America, Britain and China are all now calling for - let alone the massive injections of capital into Europe's banks.
Greater fiscal integration requires the upfront and ongoing commitment of voters and officials across member countries and increases the risk of moral hazard like free riding and breaking of covenants in the future, especially from member states that would be required to execute tough reforms.
But that is just the beginning of an ambitious to-do list from the Fund, which starts from recognising, in the words of the staff report, that "incomplete economic and financial and fiscal integration is casting a shadow on the future of Economic and Monetary Union".
The optimists' gloss on all that was that Italy's financial woes are being quarantined - and the rest of the eurozone is galloping towards the kind of fiscal integration that would (at the last) allow the European Central Bank to (in effect) underwrite the credit-worthiness of all member states (see my post, The eurozone's borrowing costs may stay lethally high, for more on this).
The 17 members of the eurozone, of which the UK is not a part, are expected to back further fiscal and political integration in an effort to prevent a repeat of the debt crisis.
We are aiming for binding rules to ensure strong fiscal and economic discipline in all countries, to go hand in hand with fiscal and economic integration -- not only discipline, but also integration in the euro area as a whole.
But for Germany this treaty to toughen fiscal rules is only the start of integration.
In Davos recently David Cameron argued that successful currency unions had vital features in common: a lender of last resort for the state, economic integration and flexibility to deal with shocks, fiscal transfers and collective debt.
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