A common currency in a union of states such as the European Union can only work in the long term if financial market policy, economic policy and fiscal policy interact at European level and in the Member States within the framework of common rules. In this way, the independent central bank is given the opportunity to fulfil its monetary policy mandate.
Unfortunately we are quite some distance from this ideal condition. The crisis has shown us just how much the various policies affect each other. It has shown how easily bad budgetary management, excesses in the financial markets and a steady loss of competitiveness can reinforce each other. I am convinced that Europe has understood this.