This includes fostering competition in product markets, particularly in services sectors, and the reduction of rigidities in labour markets. As regards the second issue, let me stress the importance of a more sound and resilient financial system. In this respect, recent steps like the Basel III framework mean some good progress in this direction. Nonetheless, further bold policy actions need to be taken.
This includes in particular the establishment of effective bank resolution schemes for systemically important financial institutions and an improved supervisory framework with new  2  See e.g Rudi Dornbusch, 1997, “Fiscal aspects of monetary integration”, American Economic Review Papers and Proceedings 87, pp. 221–223. BIS central bankers’ speeches  3  macro-prudential tools.