Turning to sovereigns, short-term fiscal pressures remain contained. But medium-term challenges are adding to financial stability risks. Fiscal fundamentals remain fragile in some euro area countries, given their high debt levels, rising funding costs and high short-term refinancing needs. As government bond yields have increased sharply across the euro area, higher funding costs will ultimately weigh on sovereigns.
2  BIS Review 129/2008  In the long term, an alternative compensation model for SDD will have to be devised, as it is understood that the transaction-based MIF will have to be phased out for both the SDD and for legacy direct debits at both national and cross-border levels.