Conditions for Genuine Financial and Monetary Stability

Abstract

To the extent that there is a European bureaucracy the question is whether there is a need to move further to coherent governance or stay within the present, fragmented system. Coherent governance requires a notion of common political and economic interests whose objective foundation already exists but has not found yet a concrete, material form. Conditions for financial stability exceed the national boundaries and cannot be treated properly within them. Even small steps cannot be taken towards more stable financial sector by the member-states themselves and solely at the national level. For example, national banks that impose willingly upon themselves a 100 % reserve requirement will have to face the competition from their foreign counterparts.