For example, there is some risk that firms will use knowledge from additional transparency about the stress test to engage in transactions that are solely designed to reduce losses in the test, but that do not truly reduce risk in their portfolios. As supervisors, however, this is something that we can guard against through the regular examination process.
Increasing product market competition, particularly in the services sectors, would also facilitate the restructuring of the economy and encourage innovation and the adoption of new technologies. At their meeting on 28–29 October 2010 the EU Heads of State and Government agreed on the reform of the European Union’s economic governance.