Stability Bonds must not lead to a reduction in budgetary discipline among euro-area Member States. A notable feature of the period since the launch of the euro has been inconsistency in market discipline of budgetary policy in the participating Member States. The high degree of convergence in euro-area bond yields during the first decade of the euro was not, in retrospect, justified by the budgetary performance of the Member States. The correction since 2009 has been abrupt, with possibly some degree of overshooting. Despite this inconsistency, the more recent experience confirms that markets can discipline national budgetary policies in.
