First responses These lessons show us that the crisis was an interlinked phenomenon involving the public sector, real sector and financial sector. Consequently, a comprehensive response to the crisis needs to address all these sectors and the ways in which they are interconnected. So far, there has been important progress in all 5 areas I identified.
There is strong momentum behind reinforcing economic governance to prevent and correct fiscal and broader macroeconomic imbalances. The package of legislative reforms now undergoing final discussion, introduces a new surveillance framework for macroeconomic imbalances, with an alert mechanism based on a scoreboard of key indicators. An enforcement mechanism allows the Council to fine euro area countries in case of repeated non-compliance with recommendations.