I participated today in a Conference at the Belgium Central Bank in the panel with the following topic: “Euro Area governance: is it fit for the next crisis”. Here are some of the slides I used: 
I had time to talk about 3 issues: methods to correct the excessive bank’s holdings of domestic sovereign debt; debt restructuring and the revision of the Stability Pact. On the first topic my view is that only a European safe asset offers a good solution:
The other solution, besides being destabilising now, “increase the risk of most banks in the euro area”
In the the conclusion of a recent ESRB working paper:
I rejected the idea of upgrading the ESM competences on debt restructuring, while keeping it a intergovernamental entity, not accountable to the European Parliament. This delegitimisation just fuels populism. Debt restructuring is already possible but the Commission does the DSA
On the revision of the Stability Pact, for pragmatic reasons, I start from the recent proposal on a pure expenditure rule proposed by the french CAE in its Note n 47. However, I introduce some important changes for severe recessions and for the role of fiscal councils.
And my conclusion
