Several FinTech firms have already developed radical strategies to lock in customers, such as rebates and reduction of the merchant discount rate. These strategies are designed to scale up the platform as fast as possible and achieve a critical mass.
It should come as a useful and timely wake up-call for those who are, in effect, contemplating watering down the institutional foundations of the euro’s stability. Reforming the Stability and Growth Pact under the pretext of rendering it more growthfriendly would be the wrong path to take. There is no such thing as the alleged trade-off between economic growth and fiscal prudence!