The worth of the financial support and the commitments of the sound finance management

What should be managed that the €440bn European Financial Stabilisation Facility would be enough to bail out 16 eurozone countries? Is it the European nations’ public debt, liquidity and solvency of banking sector or the stability of currencies? The many will agree that the outcome of the support depends mainly on who is responsible to clear up the mess.

Could the international authorities be treated as the boss who safeguards financial stability by tightening capital and liquidity requirements for financial institutions and setting the robust conditions for bail out entities? The new regulations only change the business rules, and the financial support is just the reallocation of funds. What if the national governments were the superiors? Looking carefully at the policies that are lacking of efficient allocation of public finance and consequently, imposing higher taxes, do not raise too much confidence. Eventually, let us to consider the entrepreneurs. Their successful business insights may create a tangible value that is needed to shift uncertainty regarding the financial collapse into the sustainable development.

Thus, what is the worth of the financial support and the commitments of the sound finance management if essential public and private sectors’ cooperation is eliminated.