To be sure, in Europe, loss sharing of this kind involves the difficult issue of fiscal transfer among member countries. It is very much hoped that appropriate measures will be taken in this regard in a European way. IV.
Long-term challenge: convergence  Over the longer time horizon, economic convergence is a prerequisite for the euro area financial markets to become a genuine single market with high liquidity. However, what we observe right now is divergence or fragmentation, not convergence.