This paper argues that the European fiscal union and the measures of the ECB constitute a policy of excessively loose budget constraints in the Eurozone. They will slow down or hold back the real devaluation necessary for the southern countries to regain competitiveness and continue to cause capital flight as long as the printing press underbids the capital markets. The paper shows that Europe has the choice between two models: (i) free access to Target credits and eurobonds and (ii) the US model, with annual Target debt redemption and self-liability for any funds borrowed in the market. It suggests creating the United States of Europe following the US model as closely as possible.