Though feasible, such segregation would be difficult to realise – difficult from an organisational perspective as well as legally. Another challenge is that, on the one hand, supervisory decisions must at least be subject to indirect parliamentary control; but on the other hand, the central banks’ independence must not be undermined.
To the extent that action under the preceding point is implemented, a lowering of the direct and indirect tax rates will become possible, with positive impact on growth without jeopardising fiscal sustainability. On the expenditure side, efforts to better target social benefits must continue, while the existing exemptions from the general pension system provisions must be re-examined.