But, completion of this agenda, significant as it is, would leave more too-big-to-fail risk than I think is prudent. What more, then, should be done?
The ECB is concerned about recent signs of a slowdown or even back-tracking in terms of structural reforms and fiscal consolidation. Ill-designed structural policies, economic rigidities and undisciplined fiscal policies may contribute to increased inflationary pressures or higher inflation persistence, which monetary policy would need to take into account.