At this juncture it is even more necessary to ensure that further delays in introducing supranational intervention tools do not exacerbate the area’s fragilities and make it more difficult to react appropriately to a shock or to prevent contagion. We do not underestimate the signals of nervousness and anxiety from the financial markets, concerning Italian banks.
But eventually they come to an end, once households’ and corporates’ balance sheets have been repaired. And that poses the problem of how and when normalizing monetary policy. On the second point, a challenge relates to possible spillover effects on emerging-market economies of changes in the monetary policy stance in advanced countries.