3  An adequate fiscal capacity and the implementation of the capital markets union If sovereign and bank risks management is a source of concern, turning to the state of play of discussions about the fiscal union and the implementation of the capital markets union will provide little consolation.
Monetary policy was the sole line of defence against the risk of euro area financial fragmentation during the sovereign debt crisis and against the risks of deflation that emerged in the years thereafter. The ECB’s Governing Council demonstrated its readiness to use all of the instruments available and, if necessary, to introduce new ones to pursue the objective of price stability.