Prior to the crisis the binding force of the euro-area fiscal rules was modest, to put it mildly. Thus, when the crisis hit, many countries had little fiscal space to counter its impact. As a lesson of the crisis the rules were stiffened somewhat. But at the same time, the Commission was granted more leeway in interpreting the rules.
BIS Review 90/2006  1  Over the years, the Committee has developed increasingly into a standard-setting body on all aspects of banking supervision. 3. The Basel Capital Accord  No bank can maintain the public’s trust for long if it lacks sufficient capital, so supervisors impose capital requirements to safeguard the banking system.