This positive and stabilizing influence is not only felt within the euro area, but also in the countries that have close ties to the euro area, such as the countries currently conducting accession negotiations with the EU. Thus, with the euro as a stable anchor, EMU creates a zone of stability that is even larger than the euro area itself.
*  *  *  Almost exactly a year ago, the Federal Reserve and the other bank regulatory agencies publicly reported the results of the Supervisory Capital Assessment Program, or SCAP, also known as the bank stress test. 1 In many respects, the SCAP was a milestone in both the financial crisis and in the practice of banking supervision.