However, the euro area as a currency union with sovereign states faces specific risk factors that may spur multiple equilibria and self-fulfilling market dynamics. One of these factors is redenomination risk. Markets at times assigned a positive probability to the risk of exit of a euro area member country from the single currency. Another factor is financial contagion.
I hope the current reform of the governance framework will not culminate in a rules-free setting. Sustainable public finances are in the interest of taxpayers as well as fiscal authorities and central banks. 7. Closing remarks Ladies and gentlemen,  6/7  BIS - Central bankers' speeches  let me conclude. From a central banker's perspective, fiscal rules are indeed very important.