Strengthened economic and budgetary surveillance procedures are complemented by an enhanced regulatory and supervisory framework at EU level. The European System of Financial Supervisors was set up, comprising the new European Supervisory Authorities (the so-called ESAs) for banking, insurance and securities markets and the European Systemic Risk Board (ESRB) to address macro-prudential matters.
Just a few years ago, this group of countries included Germany, then labelled completely wrongly the “sick man of Europe”. Yet Germany is now an example of how big the dividends of reform can be if structural adjustment is made a strategic priority and implemented with sufficient patience.