The rapid spreading of the crisis is reducing the options at hand to tackle the crisis. Europe has already taken important decisions to improve its crisis resolution mechanism and to strengthen preventive measures to avoid macroeconomic imbalances and unsustainable fiscal policies. It is important to implement these rules now and make the institutions operational, as markets tend to lose patience.
Bankruptcy law will provide a mechanism for an orderly settlement of obligations. Bankruptcy separates bad managers from potentially valuable assets, lifts debts from shoulders that cannot support them and preserve value that alternatives such as liquidation might destroy. (d)  Infrastructure financing:  The traditional mode of financing infrastructure projects only through Public Sector Development Programme has resulted in congestions, shortages and bottlenecks.