reliant on debt instruments as opposed to equity. We argue that to achieve alignment between initiatives, an overall strategic … for the euro area financial structure. It could be a “spare wheel” model where (i) banks would remain predominant (with … sovereign debt instruments towards the instruments that will finance the Investment Plan, those of the so-called “agencies”, and …

, imbalances in the euro area have not reduced. …We assess the evolution of real exchange rate misalignments within the euro area from a Fundamental Equilibrium …. Whatever the output gap assumption, Southern countries were massively overvalued before the euro area crisis. However, the …