Our concern is that we simply end up with lower capital inflows and growth but no worthwhile gain in stability. Subjecting the private capital to uncertainty and discretion will have this effect. The curtailment of official financial support with the purpose of eliminating moral hazard would at the same time fail to prevent liquidity crises.
But it is not being used by many European countries – to reduce their debts, for instance. That would build confidence. There must be an institution or a mechanism which monitors precisely that. Institutionally, we have the European Commission, which should be the guardian of the EU’s treaties. If the existing rules are not respected and nobody feels responsible, there’s a governance problem.