A necessary condition for OMT is strict and effective conditionality attached to an appropriate European Financial Stability Facility/European Stability Mechanism (EFSF/ESM) programme. The joint work of conditionality and bond market interventions can achieve, we hope, the elimination of the tail risk linked with a break-up fear that has been pervasive in the aggravation of the sovereign debt crisis.
That good governance is at the very heart of economic growth and poverty reduction, and even political legitimacy, is one of the undisputed lessons of development experience from around the world over the last 60 years. 59. In the ultimate analysis, it is the quality of governance that separates success and failure in economic development.