The first of these conditions is the rigorous implementation of budgetary consolidation and growth-enhancing structural reforms in the member states of European Monetary Union. 2. The second is a reform of the framework of the European Monetary Union that takes recent experience into account. 3. The third condition is further progress in financial regulation.
Financial regulation is a far-reaching and complex field, and I do not wish to go into that today. But please allow me to highlight just two points. The first is that, when European Monetary Union was established, financial markets were expected to act as an additional corrective measure against unsound fiscal policies.