The article deals with the concept of closer intergovernmental cooperation between some EU Member States, sometimes linked with the concept of two-speed Europe in the context of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (the Fiscal Compact). In its introductory parts the article analyzes the possibilities of intergovernmental cooperation with respect to the limits set by EU law. Consequently it assesses whether these restrictions were observed in the case of Fiscal Compact, and concludes that the Fiscal Compact respects the institutional system of the EU as well as the system of EU policies and does not distort them. Particular attention is paid in this respect to the involvement of EU institutions in the implementation of the Fiscal Compact and the question of a possible transfer of powers to them, whilst the conclusion of the analysis being the absence of transfer of powers element. The article ends by comparing the vision of the two-speed Europe according to one of the main authors of the changes in the EU primary law J. C. Piris and the reality of Fiscal Compact.