Let me note that depending on its design, the financial union could introduce additional elements of risk-sharing among euro area countries, and as such, it should be subject to strong democratic accountability and control at national and European level. Most importantly, all euro area countries need to return to sound macroeconomic and fiscal positions.
Closer to home, the outcome of the negotiations on the future EU-UK relationship is also of relevance to the macro-financial outlook. The immediate strain on households and businesses as a result of the economic shock has resulted in a necessary increase in public spending: fiscal policy is the first line of defence given the unprecedented collapse in economic activity.