But that is certainly not enough. We also have to improve the framework of monetary union. This includes reestablishing market mechanisms and the liability of investors for their decisions at all levels: We need mechanisms that allow banks to fail without triggering a systemic crisis – a well-designed banking union would be a step in the right direction.
Behind the rise of the U.S. subprime mortgage problem and the surge in crude oil and materials prices observed until this summer, there were global high growth and expansion in financial leverage. Of course, there were some voices warning about the situation.