In the case of the euro area there is an additional trait. Article 126 paragraph 1 of the treaty (which is binding for all EU countries not only those whose currency is the Euro) clearly  2  See Bini Smaghi (2011); Reinhard et al. (2003); Ozler (1993). 3  See ECB Monthly Bulletin (10:2011).
4  BIS central bankers’ speeches  states that a Member State “shall avoid excessive government deficits”.