The single currency and the close integration of European markets have increased the interdependencies among Member States and hence the potential for cross-border contagion. The EMU must have rules and these rules have to ensure that the policies of one Member State do not impact negatively on other Member States via the increased interdependence of their economies.
Kiyohiko G Nishimura: Financial regulations – Asian perspectives Remarks by Mr Kiyohiko G Nishimura, Deputy Governor of the Bank of Japan, at the Panel Session “Financial Development and Regulatory Coordination under New Circumstances”, at Lujiazui Forum Annual Meeting 2010, Shanghai, 26 June 2010.