Policy challenges and the future of the EMU One of the most urgent policy tasks in the EMU is the end of the negative feedback loop between unsustainable public-debt paths and the weak conditions in the banking system prevailing in many countries. To this end, fragile banks must be recapitalized by the private sector which, exceptionally, may imply supplementary backing by corresponding national governments.
The power tussles, tensions in various quarters of world and the resurgence of global inflation and the rising costs of energy and food, have all changed the way in which we view the world, in a very, very short space of time.