In the past two years, National Treasury has embarked on a fiscal consolidation programme and the South African Reserve Bank has entered a monetary policy tightening cycle. These actions help to reduce inflation and will foster economic stability, consistent with our respective policy frameworks. In the long run, this is good for everyone.
Of course this is not the only benefit of completing capital markets union (CMU), which also include broader de-risking across European financial markets and economies, through increased cross-border risk sharing. A number of factors are required to create successful and well-functioning capital markets, which the objectives of the recent CMU action plan seeks to address:2 1.