Some banks that issued currency made redemption inconvenient, if not impossible. But they were fly-by-night operators and rarely endured beyond the first swindle. In fact, most bankers competed vigorously for reputation. Those who had a history of redeeming their bank notes in specie, at par, were able to issue substantial quantities, effectively financing their balance sheets with zero-interest debt.
It is essential that Member States comply with their commitments under the Stability and Growth Pact in the implementation of 2005 budgets and in the setting of medium-term objectives. Where relevant, this implies a correction of excessive deficits this year and determined progress towards budgetary positions which are close to balance or in surplus.