Weak financial sector can have an adverse impact on public finances, while deficient fiscal policies and macro imbalances can have negative repercussions on the financial sector. Resolving both problems will put the euro area on a track of renewed sustainable growth, leaving this crisis behind us.
This requires the implementation of effective economic governance that can ensure fiscal sustainability,  4  BIS central bankers’ speeches  competitiveness and growth, the completion of the permanent European Stability Mechanism and the efficient functioning of the new European System of Financial Supervision.