This is why it is absolutely essential that we make the whole financial system much more resilient, including through the Basel III agreement. Politis: Some still insist that the banking problems still exist. We have seen Ireland just recently injecting capital into one of its major banks. Are you confident about the soundness of euro zone banks?
This challenges the convergence measurement itself because convergence in terms of TFP is not straightforward. Countries belonging to different convergence clubs appear to be experiencing convergence at the level of their club – a concept that is not equivalent to the overall convergence within the EU.