tax cuts. procedurally, it is crucial to underpin the fiscal policy framework with a decisive and consistent implementation of the rules of the treaty and of the stability and growth pact, and rigorous monitoring and peer pressure amongst member states. by the same measure, bold structural reforms in the labour and product markets would not only increase the euro area's growth potential and enhance its ability to better withstand external shocks, but it would also eliminate a great deal of the uncertainty currently overshadowing long - term planning and perspectives. this, in turn, would also have positive effects over the shorter term. in particular, renewed momentum in the process of structural reform would foster consumer and investor confidence and thereby greatly facilitate spending and investment decisions in the euro area. we are now at your disposal for questions.

andrew bailey : taking our second chance to make mmfs more resilient speech by mr andrew bailey, governor of the bank of england, at the international swaps and derivatives association ( isda ) 35th annual general meeting, 12 may 2021. * * * introduction thank you for inviting me to speak today. i want to start by thanking isda for the important work you do, and in recent times particularly scott o ’ malia and his colleagues for working with central banks and regulators to manage the transition away from libor. your support on this complex transition has been hugely important. you may be relieved to hear that i am not going to talk about libor today. i did speak on the subject yesterday, it ’ s on the bank of england ’ s website if you are interested ( bailey, 2021 ). instead, i am going to speak about another important part of our current work and a priority for the global financial stability board ( fsb ), namely money market funds ( mmfs ). the fsb analysed last march ’ s so - called “ dash for cash ” in their holistic review published at the end of last year, highlighting a number of vulnerabilities in non - bank finance and setting out some considerations for reforms required to tackle the issues we saw in that episode ( fsb, 2020 ). mmfs were one of the issues at the top of that list. mmfs also played a role in amplifying the stress we saw during the global financial crisis, so this is the second time they have proven not to be sufficiently resilient. i plan, therefore, to set out my views today on the reforms required to solve these issues. we are committed to working with others internationally, through the fsb, to avoid history repeating itself yet again. background to the issues posed by mmfs in talking about money market funds, it is important to put them into a wider context. several aspects of that context are important, including : their historical origins, the role they played in amplifying stresses in the global financial crisis, the direction of reforms following that episode, and the position of the funds relative to both banks and the broader investment fund landscape. to start, briefly, with some history. in the us, money market funds emerged in the 1970s when regulation capped the interest that banks were allowed to pay on deposits at a level below money market yields. money market funds were set up to mimic bank deposits by maintaining a stable value of