To make sure that the Euro will continue to be a stable and credible currency, monetary policy has to be supported by sound public finances and balanced and sustainable economic growth in the member states of the Euro area.
A strengthening of the Stability and Growth Pact, preventing and correcting macroeconomic imbalances at an early stage, and more effective enforcement via gradual sanctions for non-compliant euro-area countries will help to achieve this goal. An independent fiscal authority would help to advance the institutional deepening of the Euro zone and, in this respect, reflect the spirit of Pierre Werner. BIS Review 134/2010  5