This is particularly true for the Stability and Growth Pact, the EU’s framework for fiscal governance. But it is also the case for the broader framework for macroeconomic policy surveillance. The experience of recent months has vividly demonstrated the importance of a timely correction of internal and external imbalances. But faster and more automatic sanctions alone will not be enough.
If low income individuals decide to purchase the micro-insurance product, it will certainly moderate the risks and provide the comfort or backing to be more optimistic in whatever they may be doing to pull themselves out of poverty. Micro-insurance is designed to help the low income individual cope with financial emergencies.