At the national level, independent budget offices would ensure reliable forecasts – a prerequisite for sound planning and implementation of budgets. At the euro area level this needs to be complemented by an independent entity with a clear mandate and a strong institutional framework to assess the implementation of fiscal rules.
Naturally, tone from the top is critically important, and senior leadership must not only embrace their first line risk management responsibilities, leveraging the frameworks, policies and supporting toolset of the second line, but also continually foster a culture of risk awareness, seeking when possible to design risk out of our institutions.