On 23 March 2016, EIOPA published a paper on a potential macroprudential approach to the low interest rate environment in the Solvency II context. EIOPA explains how a prolonged low interest rate environment can raise challenges for insurance undertaking which, in turn, can threaten the stability of the financial system. In its paper, EIOPA proposes a macroprudential framework to deal with this low interest rate environment. According to EIOPA this is composed of: (i) a final objective (i.e. achieving a stable financial system); (ii) two intermediate objectives (i.e. mitigating the likelihood and impact of a systemic crisis); and (iii) three operative objectives to be targeted by authorities (i.e. Increasing the resilience of the insurance sector, limiting risky behaviour as insurers collectively "search for yield" and avoiding procyclicality). EIOPA goes on to define a set of Solvency II compatible instruments to address these operative objectives but says that it is still open to debate whether these instruments fully address the challenges posed by a low interest rate environment. As possible actions going forward EIOPA suggests intensified monitoring of ongoing risks by itself and National Supervisory Authorities (in the short term) and further enhancement and harmonisation of the recovery and resolution framework to minimise the probability of default (in the medium term).