Europe must “learn the right lessons” from the sovereign debt crisis, one of the Bank of Finland’s board members told an audience in Helsinki on June 19.

The crisis “was only tamed once the European Stability Mechanism was created and the European Central Bank took up the role of the lender of last resort”, Olli Rehn said. “The issue of moral hazard is important,” he continued, “but if we focus only on it, we can close the shop.” 

European policymakers needed to keep their “big bazooka” to