Like in many other areas, the costs for the affected institutions are more visible in the short-term than the benefits of financial market reforms for society. Seite 4 von 10 Deutsche Bundesbank, Directorate General Communications Wilhelm-Epstein-Strasse 14, 60431 Frankfurt am Main, Germany, Tel: +49 (0)69 9566 3511 or 3512, Fax: +49 (0)69 9566 3077 presse@bundesbank.de, www.bundesbank.de Reproduction permitted only if source is stated.
There are sound economic reasons for scaling up public investment, but we have also to recognise that, if it is funded through higher borrowing, it will unavoidably constrain the policy options for macroeconomic stabilisation, leaving the region’s economies more vulnerable to negative exogenous shocks.