Importantly, the regulation will introduce a new feature in financial regulation, namely that the prudential standards laid down in this legislative proposal will be directly applicable in all EU member states.
One avenue by which to lessen the risk of a more difficult adjustment is for us to restore fiscal discipline. The rise in national saving that would accompany a reduction in the federal budget deficit will alleviate some of the burden of adjustment that would otherwise be required of the private sector through movements in asset prices.