I am also concerned about the lack of further reforms in euro area countries, even though much has already been done. But I strongly oppose the view that the central bank should stand passively by if governments are not doing enough. We are acting in accordance with our mandate. And governments would probably have done even less, while things were falling apart.
We have not only given them time to pursue reforms, but also – in a time of uncertainty about the banking sector – to set up European banking supervision. If there is enough pressure from the markets – if, say, sovereign bond yields are rising – then aren’t countries quicker to implement reforms? Market discipline is indeed important.