Moreover, it is not clear that this type of approach would be consistent with our increased supervisory focus on banks’ risk-management processes and control infrastructure rather than on conducting detailed technical reviews.
This issue has been debated extensively since the start of EMU. The debate has recently intensified, reflecting concerns about the increased divergence of growth rates over the past few quarters and uncertainties deriving from French and Dutch rejections of the Constitutional Treaty. Before I discuss this issue, allow me to offer the following qualification.