The negotiations with Greece have been a telling reminder of the weaknesses of the euro area. If the monetary union is going to be stable in the long term, some important elements will have to be changed. Yet there is little agreement on the details, particularly on further steps to integrate fiscal policies. A fiscal union can create stability only if it includes both credible budget rules and some kind of risk sharing. It is an important way of stabilizing the euro area, but not a universal remedy. A structured process is now needed to put together a reform package and to overcome mistrust between the euro members.