The current reform efforts must therefore extend beyond the financial system and include the body of European rules and regulations. These rules were not sufficient to ensure solid public finances in all member countries.
Estimates vary, but it is certain that the remaining budget for carbon emission relating to this target will make large amounts of existing reserves of oil, gas and coal unusable. The exposure of financial institutions to the resulting write-offs of these stranded assets and the repricing of companies is potentially huge, and could pose a threat to financial stability.