There is, therefore, no conflict between the conduct of a sound monetary policy focused on the preservation of price stability over the medium and longer-term on the one hand and the safeguarding of financial stability and efficiency on the other hand. III.
However, the Meseberg declaration and yesterday’s Euro Summit, by falling short of delivering on further risk sharing while adding additional layers of risk reduction measures, lead us to consider whether the costs of attaining additional risk sharing are worth the risks to financial stability in the interim period. If not, what do we need to revisit and reassess to ensure it?