First, institutions facilitate both more credible and more flexible policymaking. BIS central bankers’ speeches  3  Rules can only really be credible if they are applied with very little discretion. Otherwise as soon as they actually bind, countries will find reasons not to follow them.
But it is insufficient when judged against the long-term challenges the euro area is facing due to the debt loads inherited from the crisis and the implicit liabilities created by its ageing societies. So while short-term risks to the economy have somewhat abated in recent times, growth-enhancing structural policies remain warranted to tackle persisting longer-term vulnerabilities. 1/1  BIS central bankers' speeches