Such practices may be misleading in judging the compliance with regulation. However these efforts may reduce risks but could be insufficient to avoid financial crises. Therefore, ways should be designed to involve more effectively the private sector in crisis resolution (the “burden-sharing” issue). In the wake of the Mexican crisis, the G10 Finance Ministers and Central Bank Governors endorsed the recommendation of the Group of Ten Report on “The Resolution of Sovereign Liquidity Crises” to introduce in sovereign bond contracts collective action clauses. The G7 endorsed this recommendation. Efforts undertaken recently by the G10 Deputies to design concrete steps to implement this proposal should also be supported. Another way to promote private sector implication is the voluntary roll-over or restructuring of short-term debt coming to maturity. The Korean experience has been replicated, yet in different conditions, with success in the case of Brazil. Such a solution worked well after the Brazilian authorities committed firmly to, and implemented, fiscal adjustment. The use of financial innovative techniques should also be considered: for instance, the introduction of roll-over options in debt contract (Buiter proposal) or put options associated with significant debt reduction. 3  BIS Review 81/1999  As to the role of the international community: The IMF has a central role to play in macroeconomic surveillance which is its main mission. The conditionality associated with financial assistance is essential to give economic agents a clear assessment of the efforts made by Members committed to implement adjustment programmes. Furthermore, the IMF can improve its action as regards prevention.
I would like to draw your attention to the following issues: í  first, the euro area will have to face up a number of challenges to confirm its initial success;  í  second, the success of the euro will make a contribution towards encouraging a balanced international monetary situation. I believe that in the current overall economic situation, the success of the euro will help not only Europe but also the rest of the world which will benefit from European prosperity and growth as part of a healthy world economy. This would help facilitate the current accounts adjustments of the countries affected by the crisis. The success of the euro will be complete if a number of challenges are taken up A few years ago, it was necessary to convince a great deal of sceptic people that the euro was a viable project. Many of them pointed to its presumed contradictions and its alleged inconsistencies: for example, the impossibility of achieving an efficient policy mix without a political federation; the impossibility of avoiding some “asymmetric shocks”; the lack of sufficient flexibility of the economy and real mobility of the labour force in the European countries, etc. The result was that the euro would never exist! BIS Review 81/1999  4  These criticisms proved wrong as to the introduction of the euro. But they are useful to help answer the question of what are the conditions for ensuring that the euro is a complete success.