After the significant fiscal consolidation achieved by the countries in southern Europe, what are the next necessary steps in order to deal with these imbalances? It is not by piling new debt over old debt that the euro area will finds its way out of the crisis: it is by growing out of debt, which means strengthening the long-term growth potential of our economies.
This requires continuing reforms in individual countries and a further strengthening of the euro area governance framework to allow for a collective approach to economic reform. Let me add that countries which have been under EU-IMF programmes, including Greece, have made remarkable efforts in this respect, but reforms in larger countries are even more crucial for the economic future of the region.