The creation of the Single Supervisory Mechanism conferred both micro- and macroprudential responsibilities on the ECB. [1] I will therefore focus on our achievements and challenges in coordinating both functions. In particular, I will touch upon our joint effort in carrying out banking sector stress tests and our interaction in the conduct of prudential policy in the current environment.
An active industrial policy can also help, as firms tend to cluster in industrial groups so as to achieve economies of scale in supplies etc. For example, Ireland actively targeted major IT firms in the 1980s and early 1990s, which has seen a cluster of such IT firms just outside Dublin.