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. accordingly, in june 2012, g20 leaders endorsed the fsb ’ s recommendations on strengthening its capacity, resources and governance. i strongly support the further development of the fsb because i am convinced that it will further improve the elaboration of international rules and regulations as well as international cooperation in regulation and supervision and help to achieve an international level playing field. bis central bankers ’ speeches rigorous monitoring of national implementation while rule - making at the international level is a necessary condition for financial stability, it is by no means sufficient. for the rules to be effective, they have to be translated in national laws and regulations in a timely and consistent manner. therefore, we need to strictly monitor implementation, disclose the respective findings, and let peer pressure work its magic. the fsb and international standard - setting bodies have jointly developed a coordination framework for implementation monitoring to ensure consistent implementation of the reform agenda. as another important part of implementation monitoring, the international monetary fund together with the world bank is regularly assessing the adherence of its member countries to international standards. thereby, the fund is promoting international monetary cooperation and exchange rate stability. in response to weaknesses detected during the financial crisis, the fund initiated various reforms with the aim of strengthening its internal governance as well as its analytical capabilities. i highly welcome those reforms which will further improve the fund ’ s work. to sum up, i regard strengthening existing bodies in the field of global financial regulation and the international monetary system as the right way forward for two main reasons. firstly, it allows building upon the substantial expertise gathered in existing institutions. secondly, jurisdictions are obviously reluctant to further cede national sovereignty to a supra - national level. the enduring debate about the creation of a fiscal union in europe is providing just one vivid example in this regard. accordingly, the creation of a global regulatory authority does not seem to be practical at this point in time. moreover, i regard the current practice of setting rules for the global financial markets as appropriate. in a first step, set the rules at the international level. as a second step, rigorously monitor their translation in national laws and regulations to ensure consistency and a global level playing field. as i have pointed out

was established for seven countries, including the euro area countries france, italy, belgium, slovakia and malta. it will be crucial to implement the new rules in such a way that high debt ratios actually fall. this would require setting ambitious targets, and governments would then have to comply with them more ambitiously than in the past. setting priorities will remain the key fiscal policy challenge at any rate and this will not get any easier if additional expenditure, for example for climate action, defence or in view of demographic pressures, is moved higher on the priority list. this is true even in germany, where the debt ratio is no longer far from the 60 % limit. in this case, it may indeed make sense to expand the fiscal scope somewhat by means of a moderate reform of the debt brake just as long as germany complies with the european debt rules. the bundesbank has put forward proposals to achieve that goal. 5 concluding remarks ladies and gentlemen, after three questions and three topics, i would like to end with a triad. democracy, freedom and openness are core values on which our society, our daily coexistence, and 6 / 7 bis - central bankers'speeches our prosperity are based. we are living in challenging times. this is exemplified by the elections in france and three eastern german federal states as well as, this coming november, in the united states. for the future, it remains to be hoped that we can maintain democracy, freedom and openness as a secure basis. thank you for your attention. 1 konjunktur : wirtschaft in euro - zone wachst – jedoch nicht in deutschland ( wiwo. de ), wirtschaft in euro - zone wachst trotz bremsklotz deutschland 0, 2 prozent ( msn. com ) 2 european central bank, higher profit margins have helped firms hoard labour, economic bulletin, issue 4 / 2024, pp. 54 - 58. 3 see nagel, j., reflections on the eurosystem's new operational framework | deutsche bundesbank, speech at the konstanz seminar on monetary theory and monetary policy, 16 may 2024. 7 / 7 bis - central bankers'speeches