3.3  The banking union as part of a better architecture  And that is an important point, because the close link between government finances and the financial system was a major element of the crisis.
A key component of Swiss fiscal policy – albeit one which cannot be readily transposed to the euro area – is the principle of direct democracy which gives the general public a say in fiscal decisions, especially at the cantonal and local government level. Studies1 suggest that cantonal referendums tend to curb spending.