Chapter 2 analyses the failure of the Eurozone’s institutional setup for fiscal and economic coordination. I explain why the legal rules of the original Stability and Growth Pact were unable to prevent economic asymmetries in the Eurozone. To make this argument, the chapter points out that the rules have been patently incentive-incompatible, despite the repeated attempts to reform them. In this context it elucidates in particular the alterations to the Pact legislated during the sovereign debt crisis in order to reinstate the Eurozone’s credibility (the so-called Six-Pack, the Two-Pack and the Fiscal Compact). While most of the commentators writing soon after the rules were adopted expected them to fundamentally alter the Eurozone’s constitutional setup, I argue why in reality none of them has really affected the Eurozone’s constitution.