Market participants and supervisory authorities must ultimately take measures to address the roots of the current mistrust. The best contribution the ECB can make to foster confidence in the current situation is to continue to firmly anchor medium to long-term inflation expectations in the euro area by keeping its policy uncompromisingly geared to pursuing price stability.
All the institutions involved agree that responsibility for solving problems rests first and foremost with the market players themselves. Nevertheless, a framework for the better handling of systemic risks has been put in place. III Despite all this progress, there are still many items left on the agenda. Let me pick out three of them. Europe’s supervisory structures are under non-stop scrutiny.