I will stop here with this proposal which, I admit, is almost a provocation. Surely there is a need for more thought. But the goal must be to make financial crises less likely. The second line of action is how to reduce the impact of a crisis in one country on the rest of Monetary Union.
Crises in fact cannot be ruled out, in particular as regards the private sector, and even phases of low growth or relative decline of one country compared with the rest of the area. What matters is to prevent one country’s problems from becoming problems for the others. Crisis contagion mainly passes through the financial system, particularly banking.