The new European supervisory system shares the basic principles of the approach followed in Italy: emphasis on close integration of on- and off-site controls, quantitative and qualitative assessment of risks, and close linkage between the results of analyses and remedial action. The Single Resolution Mechanism for crises will come into operation in 2015.
Such risks continue to be associated mainly with oil price developments, uncertainty  BIS Review 19/2005  1  regarding future increases in indirect taxes and administered prices, and potential second-round effects stemming from wage and price-setting behaviour. In this respect, developments in long-term inflation expectations need to be monitored closely.