• Euro zone countries’ efforts on fiscal discipline already bearing fruit, pace of consolidation quicker than in other areas
• Positive effects of fiscal consolidation on confidence far outweigh its negative short-term effects on demand
• Must improve competitiveness with structural reforms
• Some room for direct public support for growth
• Euro zone needs financial union
• Euro zone needs unified supervision of all banks headed by the ECB, but decentralised to national central banks
• Banking system strength of crucial important to euro zone
• Significant threat from lack of supranational bank deposit guarantee
• Deposit guarantee scheme should have “massive firepower”, with annual contribution from banks and borrowing with guarantee of member states