6 The market has started to direct its attention to the risk that deterioration in fiscal balances might push up long-term interest rates and thereby reduce the effects of monetary policy. The so-called sovereign risk is considered to be an extension of that risk.
Such debates should touch on issues that are especially important to people’s lives, such as internal and external dimensions of security, a common border policy and a more responsive foreign policy. Conclusion Let me conclude. Werner was aware that some Europeanisation of fiscal policy was an important element for the currency union.