We need more integration and we need more convergence. Which is why the budgetary instrument for convergence and competitiveness that has been agreed by the Eurogroup is a useful step, although it should evolve over time to include counter cyclical features. What do you think of the involvement of the ECB in the troika that designed and imposed the Greek bailout programmes?
For an economy with its own currency and an independent monetary policy, the optimal response to a macroeconomic shock will usually involve monetary and exchange rate policy; for example, an economy might adjust to a negative terms of trade shock through a depreciation of the real exchange rate to restore external balance.