So it’s clear why a forceful, symmetric European response is needed. Failure to act now will not insulate taxpayers from the costs of this crisis. Quite the opposite: it will amplify those costs when they finally come due. It will also weaken the policy responses already being undertaken.
1/2  BIS central bankers' speeches  For example, without visibility on future sovereign funding costs and rollover risks, government guarantees on bank loans will either be priced differently across countries — or fewer such loans will be extended. Either way, the result will be fragmentation and a more persistent loss of economic potential. A European fiscal response must be based around three principles.