Second, we know that financial markets are prone to short-sightedness, herd behaviour and sudden changes in market sentiment which may be detrimental to financial integration and stability.
The other major and exceptional challenge is the one we are still facing today: the preservation of price stability and the safeguarding of financial stability in the euro area during the worst financial crisis in decades. The ongoing financial crisis which is, in many respects, unprecedented in intensity, scope and complexity has highlighted the role of the ECB in safeguarding financial stability.