We have set up these new mechanisms, but their positive effects on the credibility of government fiscal policies are not yet visible. And the government changes that have taken place in some of the more exposed countries have not yet had much of an effect on the continuing fragility of financial markets. Fundamental questions are being raised and they call for an answer.
At the heart of these questions are not only the credibility of governments’ policies and the actual delivery of the promised reforms, but also the overall design of our common fiscal governance. I am confident the new surveillance framework will restore confidence over time. I am also quite sure that countries overall are on the right track.