An overhaul of the EMU architecture was necessary and a lot of progress has been made over recent years to strengthen EMU, both at national and at supranational level. And we are now seeing encouraging signs. Recent financial market developments clearly demonstrate the credibility of the reform measures taken at European and national level – although progress is unevenly distributed.
Investor confidence is returning, the persistent euro area financial market fragmentation is decreasing and contagion is receding. However, the policy agenda needs to be completed. Investment has taken a disproportionate share in the adjustment process and must be freed. Financing the real economy via the banking channel should resume with the certainty and confidence accompanying the Banking Union’s comprehensive assessment.