In the face of these free-riding incentives, the non-cooperative behaviour of the member states can generate unsustainable fiscal policies. A large number of papers have highlighted the challenges that come with the establishment of a monetary union among countries with independent fiscal authorities. We know, for example, that if there are no limits to non-monetary policies (e.g.
Furthermore, the European banking industry has shown commitment by launching several initiatives to create SEPA, and by setting up the EPC to drive the different industry initiatives. More recently, public administrations have also shown their commitment to SEPA, as the ECOFIN Council in October expressed its strong political support for the creation of SEPA.