The legal uncertainties create risks to counterparties in OTC contracts and, indeed, to our financial system that simply are unacceptable. They have also impeded initiatives to centralize the trading and clearing of OTC contracts, developments that have the potential to increase efficiency and reduce risks in OTC transactions.
In the interest of the single currency, we need to insist on clear rules for the economic and fiscal policies of the individual countries in order to ensure the financial stability of the euro area as a whole. The bad experiences of the past demonstrate that we also need strict enforcement of the agreed rules.