A more-fiscally-integrated monetary union would help address the problems of asymmetric adjustment and the deflationary bias of our monetary union. Sustainable economic growth can contribute to financial stability. Failure to maintain sustainable growth has been the biggest threat to the long-term stability of the EU since the onset of the 2007 crisis.
An appropriate balance between managing risk and enabling investment needs to be struck. In this connection, it is crucial that the regulatory framework does not impede, but provides a suitable environment, for sustainable growth. 4  BIS central bankers’ speeches  Ladies and gentlemen, ultimately, a sustainable recovery will need to be underpinned by higher investment.