Simplifying the current governance framework and increasing its transparency are both important. To do so, the Commission proposes to eliminate a number of central features of the current framework, including the structural balance rule, the 1/20th debt rule, the expenditure benchmark and the use of ‘Medium Term Objectives’.
The aim is not only to eliminate individual risk factors but to make the financial system more robust as a whole, so that future crises no longer result in such dramatic consequences. And so we now come to the question “What have we done to reduce our vulnerability to crises and to strengthen the resilience of the financial system?" 4.