We are fortunate to live in an age of rule-based international organisations set up by a few forward-looking generations that came just before ours. In the field of economics, the IMF, the World Bank, the WTO, the OECD, the EU and the euro project should be highlighted.
This inter-dependence turned out to be a major source of macro-systemic risk in the euro area. The sovereign debt crisis has brought to the forefront the failures in EMU economic governance, and has exposed the particular vulnerability of euro area Member States to changes in markets’ sovereign risk perception.