Improvements have been built on belief that countries will reform and those countries must deliver on their commitments.
- ECB’s ready to implement bond purchases if and when programme is approved
- Recent calm on financial markets may not last without action
- Broad money is fragmented in the Eurozone
- Single bank supervision needs to be decentralized and include all Eurozone banks
- Real risk that supervision could interfere with monetary policy and should therefore be strictly separated
- ECB council role in supervision must be limited
- Europe faces a similar situation to that of Japan in the 1990’s
- Supervisiom can be arranged within existing treaty, no need for a new legal basis
- Any kind of mutualization of risks has to come with the right incentives
- Residual risk must be borne first by the local tax payer ahead of European tax payers
