The question as to whether the cooperative framework underpinning the European project and international arrangements is outdated. 2. Towards a suitable institutional design The institutional arrangements of the euro area remain its key challenge. The euro crisis, in particular, revealed severe structural flaws. Let me briefly summarize the main lessons learned to give you a better understanding of the current reform challenges.
When regulation is tightened in one area, incentives are put in place for other intermediaries to step in. When certain business activities are pushed out of the banking sector, it does not necessarily mean that the risks for financial stability increase, but nor does it mean that these activities will not pose risks if they are handled by other market participants.