We must take an institutional leap and turn the European Stability Mechanism into a European Monetary Fund, so as to put in place a specialised entity to manage imbalance situations that a Member State may have to overcome.
Imbalances may occur following the adoption of national policies that are unsustainable in the long run, due to asymmetric effects 4  BIS central bankers’ speeches  of common shocks or specific shocks resulting from circumstances outside the scope of economic policy-makers.