This example, of course, is mere conjecture, a case which is quite unlikely to develop, particularly as we may expect the business cycles of the euro area countries to continue to converge as they have for the past few years.
Repairing the single market for capital is a collective endeavour in which the ECB has a role to play, in coordination with the European Commission and the European Supervisory Authorities. To this end, let me put forward a few ideas. Meeting the capital adequacy targets set by the EBA’s capital exercise should be a priority.