Market incentives that appropriately support prudent fiscal policies and reduce risks on bank 4/6  BIS central bankers' speeches  balance sheets may usefully support the implementation of the existing rules-based framework.
To reinforce the credibility of the no bailout clause, and better anticipate debt sustainability problems, the ESM needs to be able to distinguish early on between liquidity and solvency problems.10 More clarity in our policy frameworks would allow us to pick up the can at an early stage rather than kicking it down the road.