At the same time, one can also observe what appears to be less aggressive supervisory criticism of  2  BIS Review 42/2001  lending policies during the economic expansion and an apparent get-tough policy at cyclical peaks and during contractions. Both of these phenomena can be explained by rising optimism followed by a pulling back and heightened caution.
Having an eye on macroeconomic developments and placing limits on budget deficits and public debt by means of an enhanced SGP will certainly help to make the euro area more stable. Nevertheless, the occurrence of crises can never be ruled out. For that reason, it is necessary to have a crisis-resolution mechanism in place.