Financial Literacy, together with Financial Inclusion and Consumer Protection form a triad which, collectively, has an important bearing on Financial Stability. The three legs of the triad have strong inter-linkages, with each element having a vital bearing on the others. The absence of any one would make it difficult to attain the remaining goals.
Although concerns about the stability of Spain’s financial system had temporarily subsided thanks mainly to the agreement reached at the EU and eurozone summits, in order to fundamentally resolve the debt problem it is nevertheless necessary in Europe to break the underlying negative feedback loop among fiscal balances, the financial system, and economic activity.