Nevertheless, we now know that there are two attributes of financial instability:   excessive volatility of macro variables such as interest rates and exchange rates that have a direct impact on the real economy; and    financial institutions and markets threatened by illiquidity to the extent of jeopardizing systemic stability.
Indeed, with the latest enlargement of the European Union, which will come into effect on 1 May 2004, the post-war rifts in Europe have finally been healed again.