Second, euro area countries need to strengthen the implementation of specific measures to restore confidence in the financial system. On this point, there has been some progress in the past several weeks. The 17 countries in the euro area have given approval to expand the functions of the European Financial Stability Facility (EFSF) and discussions about financial institutions’ recapitalization have started.
At a series of meetings on October 26, European leaders agreed on comprehensive measures including a new Greek bailout package. I strongly hope that each measure will be specified and then implemented promptly. BIS central bankers’ speeches  3  Third, those euro area countries drawing strong market concern over their fiscal conditions should steadily work to reduce their fiscal deficits.