Calibration of alpha should be based on forward-looking through-the-cycle probability of default of various asset classes/rating classes and should be based on the credit history of individual banks and reflect their own credit risk profile.
The euro has led companies to see the euro area as a whole as the relevant domestic market for their business, rather than their own national markets as in the past. In this respect, the single currency has undoubtedly been a catalyst for the progressive reshaping of the European productive sector, which are in turn creating a more efficient and vibrant economy.