The fiscal deficit was high, the debt ratio had risen sharply and had reached a level where there were growing concerns about sustainability, particularly given the perceived uncertainty about the ultimate costs of bank support and, in particular, about the uncertainty regarding the associated tail risks. In addition, the economy, particularly the domestic side, was still contracting.
The preparations for these manifold challenges have now become a clear political priority. The true "test" of the euro, however, will be its acceptance by the European citizens as "their" currency.