Although counterparties in wholesale markets should generally be expected to demand and obtain the information they need to evaluate their risks, policymakers can no doubt help establish high standards. In the case of retail transactions, support for efforts to foster the basic financial literacy of households is a useful complement to efforts to promote appropriate disclosure.
Moreover, the acknowledgement of sovereign debt restructuring as a real possibility requires deeper reflections on sovereign debt restructuring mechanism for the euro area and would underpin the credibility on of the no bailout clause. As experience has shown, “the constructive ambiguity” with respect to the market interpretation of the no bailout clause embedded in the Treaties has not really been effective.