Against this background, how can we best avoid investors questioning the sustainability of the overall euro area financial system, as well as the very capability of sovereigns to fully honour their obligations? Action is required in four main areas. First, the governance framework should be strengthened to avoid any repetition of the problems which have caused the crisis.
The measures adopted recently are a step forward. Further steps are needed, especially to reinforce crisis management, which may require Treaty changes, or a new Treaty among the 17 current members of the euro area.