Constâncio stressed that the crisis management and resolution scheme is a very challenging process. Public authorities must aim to preserve financial stability, while the competent authorities maintain national mandates reflecting their fiduciary responsibility to domestic taxpayers.
He presented the following key points:
• The full implementation of the economic governance reform, which is presently under discussion. It is unquestionable that a sound and credible framework of economic governance is fundamental for financial stability, as, for example, public debt developments have demonstrated.
• The importance of a strong financial supervision in the euro area. This should be understood as an essential component for the overall effectiveness economic governance alongside the strengthening of the fiscal pillar, the surveillance of macro-economic imbalances, co-ordination of economic policies, and the European Stability Mechanism.
• The euro area dimension of economic governance is further reinforced in order to be commensurate with the wide range of sources and channels of financial instability, which has been made evident by the financial crisis.
Full speech
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