In a society, the institutions of law enforcement can ultimately compel a citizen to abide by the rules. In the euro area, our framework based on surveillance and sanctions depends on the willingness of offending states to comply. I am aware that many observers wonder what can be done if a Member State simply cannot deliver on its promises.
That is why, when I had the deep honour of receiving the Karlspreis, I suggested a new approach to the policing of economic governance. For countries that lose market access, the current approach of providing aid against strong conditionality is justified. Countries deserve an opportunity to put the situation right themselves and to restore stability.