Therefore, to safeguard government solvency and sustainable fiscal positions in the euro area countries, governments must give fiscal consolidation top priority, taking the ongoing  BIS Review 30/2010  3  recovery of the economy into account, and bring their deficit ratios to below 3% of GDP, in line with the recommendations by the Ecofin Council.
The proposals of the Basel Committee – which are known as “Basel III” – aim to enhance capital and liquidity regulation to improve loss absorption capacity, mitigate pro-cyclicality and increase resilience to shocks.