But these steps are controversial, and may not be politically feasible in the current environment. In countries like Germany and The Netherlands, the controversy especially concentrates on a further increase in public risk-sharing. The fundamental problem is that Member States still differ substantially in terms of adaptability, overall competitiveness and institutional quality.
Let me begin by expressing my special thanks to our conference co-hosts, President Adam Posen of the Peterson Institute for International Economics and President Jung Taik Hyun of the Korea Institute for International Economic Policy; and to the panelists, Swiss National Bank Governor Thomas Jordan and Bank of Israel Governor Karnit Flug; and to Professor Olivier Blanchard.