The co-operation that was present at the start of the crisis has faded somewhat and home bias and political considerations play a key role in preventing countries from adopting the needed reforms.
Negative feedback loops between sovereign debt, banking sector problems and slow growth  6  BIS central bankers’ speeches  have also played a role in delaying the implementation of medium term plans, including structural reform. This has increased the risk of credibility loss for the G20, especially given that previously the G20 was able to demonstrate political will and decisive action.