We have also established the European Stability Mechanism, which provides a safety net for sovereigns threatened with losing market access, provided that they implement sound economic policies. But for the euro to act as a true, effective hedge in times of stress, and therefore to attain and maintain international status, we need to further strengthen the fiscal dimension of EMU.
Third, the country continues to enjoy a healthy external liquidity position, which should provide a strong buffer against potential external shocks. The current account continues to perform well due to resilient remittances from Overseas Filipinos, sustained rise in BPO revenues, and higher tourist receipts.