In many economies the delays and obstacles to adjusting to the large-scale global changes weakened competitiveness and the ability to grow. Mitigated by the improvement in funding conditions after the introduction of the euro, market pressures alone were not sufficient to drive the necessary reform efforts.
  One issue that we are all now acutely aware of as a result of the crisis is the fact that sovereign debt can no longer be considered to be a risk-free asset. It now becomes crucial for regulators to ensure that the credit risk of sovereign debt exposures is adequately recognized by banks.