The analysis underpinning the assessment of the financial stability outlook comprises three elements: •  an evaluation of the robustness of the financial system;  •  an identification of plausible and systemically important risks to euro area financial stability;  •  an assessment of the ability of the financial system to cope with shocks in the event that some combination of the identified risks and vulnerabilities were to materialise.
And by making the tax base footloose, it weakens governments’ ability to support people’s incomes and retrain those displaced by global competition. More and not less international cooperation must therefore be part of the solution.