As already mentioned before, a credible strategy requires in particular responsible macroeconomic policies and advancements in structural reforms. One essential element of the countries’ euro adoption strategies relates to the credibility of timetables. At the time of EU accession most countries had announced to join the euro area as soon as possible.
But it is also true that little research has been undertaken that distinguishes between banks and nonbanks, or highlights how their interactions are driven by economic incentives. Such research could guide regulator efforts to collect data and set policies to limit possible instabilities associated with interconnectedness.