In particular, implementing and maintaining sound fiscal policy at all levels of government is fundamental to good economic performance. This gives a country the credibility and flexibility to manage economic challenges. And it gives citizens confidence that the authorities will manage public finances prudently. I talked earlier about the impact of increased global competition.
For this reason, we would support different institutional arrangements for macro-prudential decision-making within the SSM than those that are foreseen for micro-prudential. In the latter case we have always argued for a clear separation of functions between the ECB as monetary policy-maker and supervisor. For macro-prudential decision-making, however, we see it as important that the Governing Council is more closely involved.