In short, we have not been convinced by the arguments we have heard, and we still believe that op risk is every bit as real a risk as credit risk and should be treated in the same way - with an explicit Pillar I capital charge.
These developments highlight important shortcomings not only at the level of national policymaking but also with respect to the institutional framework at the European level. The Stability and Growth Pact (SGP) was watered down in 2005 and has been ineffective in preventing the build-up of significant fiscal imbalances.