When it comes to correcting intra-euro area macroeconomic imbalances, the bulk of structural adjustments has to be undertaken by the deficit countries themselves as it was there that domestic developments became unsustainable in the years prior to the crisis.
Take the policy framework for dealing with systemically important financial institutions or the new regulatory standard for bank capital adequacy and liquidity – commonly termed as Basel III – as examples. G20 Leaders, in late 2011, agreed to further strengthen the FSB’s role in order to enable it to keep pace with its growing role in promoting the development and implementation of regulation.