Addressing fiscal and macroeconomic imbalances Even though the prime driver of the crisis was primarily located in the banking sector, the fiscal and macroeconomic imbalances that emerged as a result are real and have to be addressed. While the new governance framework I just described can help, a vital contribution has to occur at the level of individual member states.
A determined effort to correct the economic and financial imbalances is necessary accompanied by structural reforms that will enhance growth prospects. Fortunately, such an effort has already been made by several countries and the adjustment achieved is in many ways quite significant.