Successful economies need stable and sustainable macroeconomic frameworks and sound monetary policy that delivers low, stable and predictable inflation. Well-regulated financial systems and well-functioning markets are prerequisites for managing the challenges that lie ahead. In the EU, the completion of Banking Union and further developing the Capital Markets Union are important next steps.
Fiscal policy has an important role to play to incentivise the achievement of longer-term objectives. In particular, establishing a framework which ensures that excess tax revenue over and above that needed to fund sustainable growth in core expenditure is saved into the rainy-day fund. In fact, I would support re-framing such a fund explicitly as a ’resilience fund’.