Moreover, as I will elaborate in more detail later on, existing fiscal rules have been weakened over time and procedures and measures that were put in place in order to enhance economic policy coordination have not been implemented with sufficient rigour.
Let us not forget that EMU is characterised by a high degree of economic and financial integration among its members, which in normal times is obviously beneficial to all. Yet, in times of crisis, close financial integration also means that unsustainable developments in one member state can easily spread to other members perceived as vulnerable by the market.