Third, it is of crucial importance – especially within the current uncertain environment – to preserve the public’s trust in the soundness and long-term sustainability of fiscal policies. And fourth, it is important to get the regulatory response right. Market participants cannot go back to the business models of the 60s and 70s.
However, the regulatory and institutional framework for the financial sector as well as business models, risk taking and corporate governance should be reviewed with and open mind in the interest of long term prosperity and stability.