It would be rather strange if such differentiation were to make it more difficult for us to 3/5  BIS central bankers' speeches  provide liquidity to EU than to third-country CCPs. This does not mean that we would seek to substitute our judgement for that of EU or thirdcountry CCP supervisors: their primary responsibility to guarantee the resilience of CCPs, and more broadly the stability of our financial system, cannot and should not be questioned. But we need a set of safeguards so that our concerns are appropriately taken into account in the regulation and supervision of CCPs. I see three such safeguards: The first is adequate information on the operation and risk management of CCPs clearing in euro, and the capacity to assess how they would fare in times of market stress, including through stress testing. A second is meaningful involvement in the supervisory process, to ascertain that CCPs’ compliance with prudential and operational requirements provides sufficient guarantees from our perspective as a central bank. And third, we should be able to adopt requirements to address critical central bank concerns. For instance, it would be our prerogative to determine when CCPs should hold central bank accounts for deposit and settlement purposes, and to require targeted enhancements to CCP liquidity risk management when necessary in exceptional market environments. Everyone should be clear that our ability to carry out our mandate and, where appropriate, to provide liquidity to CCPs, relies on enshrining these safeguards in our regulatory framework.
So, the only way to ensure debt sustainability is to raise productivity, invest and increase the employment rate, and this implies structural reforms. Q: None of these factors are present. There is hardly any growth, investment or jobs. A: I am aware that the situation is still very difficult in Spain and that the Spanish people have suffered a lot in the process of reducing imbalances and implementing reforms. However, they can rest assured that Spain has turned the corner, and that the outlook is once again improving. This will encourage firms to invest and to start recruiting again, not only Spanish firms but also foreign ones. In a way, Spain can stand as an example not only for other countries that have been hit by the crisis, but for other large countries at Europe’s core, that have not been so active in reforming their economies. Spain is an example of how, through reforms, it is possible to redress imbalances and get out of the doldrums. Q: Which reforms are urgent? A: It depends on the country. The European Commission has already issued so-called “country specific recommendations”. The worrying thing, as the Commission acknowledges, is that these recommendations are too rarely followed. It would be preferable if countries took them seriously and felt collectively committed. In the case of Spain, my personal view is that much remains to be done to support the young people and help find jobs. They are the future.