These include: •  necessary institutional changes, including a banking union;  •  a closer fiscal union, including a fiscal transfer system and some form of mutualisation of sovereign debt;  •  reforms to enhance labour market flexibility and mobility, as well as measures to promote competition and productivity in product markets; and  •  steady reductions in (cyclically adjusted) budgetary deficits.
By reframing expectations to a realistic timeline, and ensuring that any financing assistance program for countries is sufficient for this period, European authorities could arrest the cycle of crisis summits, and thereby reduce policy uncertainty. The slowdown in China In emerging economies, growth has slowed at a greater-than-anticipated rate in recent months.