Binding fiscal rules and an institution that observes their adherence are just one component of a consistent reform agenda. Additionally, it is important for capital markets to resume their role of disciplining national fiscal policy. As for enterprises, more deeply indebted countries ought to pay higher interest rates. This will only happen if the no bail-out clause in the Maastricht Treaty really has teeth.
There are several examples of financial support from foreign allies actually harming a recovery instead of boosting it due to a lack of such institutional readiness.1 The real secret of Europe's post-war success can be seen in the fundamental and structural changes.