However, the fates of the euro are dictated not only in Frankfurt but, above all, in the capitals of the euro area. Political decision-makers lay out the course for the institutional framework of monetary union, but they also have a strong say in the economic and fiscal policy environment of monetary policy.
This also allows the Regulator to spare its resources more on identifying and responding to major systemic risks and to other priorities outside the ambit of self-regulation. It is believed that self-regulation system works effectively because of the business incentive to operate in a fair, financially sound and competitive marketplace.