That is an important guideline for today’s challenge. Undoubtedly, the vigour and the systemic nature of the current crisis call for immediate and determined action. The efficiency of the measures hinges on the mobilisation of private investment. Public funds cannot, and should not, resolve this crisis alone. Transparency is key for encouraging private capital and for restoring market discipline.
In the current context, for example, it is vital to remove uncertainty on how politics envisage dealing with Greek debt going forward. The systemic nature of the crisis entails severe contagion triggering a loss of confidence in European banks. To raise the banks’ resilience, a temporary additional capital buffer is under discussion. There cannot be any doubt that credibility is crucial for restoring confidence.