Thus, both objectives should be pursued in parallel and the emphasis should not be focused on one target at the expense of the other. In the context of real and nominal convergence, I should like to emphasise the important role played by sound fiscal policies.
What’s more, “gambling for resurrection” – by which I mean focusing on a failing institution’s unlikely prospects of recovery, which could leave creditors and taxpayers footing an enormous bill if things come to a head – is not a viable option. There is no room for wishful thinking here – and that applies to both financial institutions and their supervisors.