To illustrate this point, allow me to briefly outline a temptation which is described in the literature as a key reason for central bank independence. The temptation is known as ‘time inconsistency’. It simply means that there is always an incentive for a central bank to surprise the market with a more lax policy than is implied by its historical behaviour.
Dismantling barriers in these areas would represent a step towards greater prosperity in Europe, so the Commission’s initiative merits our support. But looking further into the future, we need to go one step further. Creating a European level playing field in insolvency law, for instance, would also improve the integration of the capital markets, particularly those for venture capital. 7.