At the same time - in addition to the reservations already mentioned - I perceive the danger of a decline in the overall security level of the individual credit institution and the banking system. Existing risks might be covered by less capital than hitherto under the Capital Accord. Self-regulation aiming at greater market discipline would be welcome.
These nationally implemented norms could help “internalize” the fiscal discipline in each country and render the matter less of an issue of EU policing of the countries’ current fiscal actions. In the Finnish case, for example, we have good experiences with medium-term budgetary frameworks. This system has made it easier to follow a planned fiscal policy and resist oneoff pressures for increasing government spending.