Now that growth is returning, continued efforts in this regard will allow debt-to-GDP ratios to be reduced. The measures required of countries subject to a financial assistance programme under the Troika have had a recessionary impact stronger than that forecast by the International Monetary Fund (IMF), particularly in Greece. Have we gone too far with austerity?
The asymmetry between powers and accountability and the limited vision arising from the fragmentation of responsibilities and the absence of a consistent sectoral policy at European level give rise to perverse incentives. If these are not adjusted in due time, they may jeopardise the sustainability of the Banking Union itself and the objectives underlying its creation.