The EU member states need to have common laws in everything, instead of national or local laws, so the EU Single Market can work properly especially for the average citizen and the average company (SMEs). In other words, the optimal level for legislation is the EU level instead of national and local level.
But one must realise that that does not mean one-fits-all policies eg economic policy or competitiveness policy/strategy!
That IMO shows some of the irrationality of the Merkozy Fiscal Compact and in its thinking in general.
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