attempt to address the problem was not made until over twenty years later. 23 having registered this shortcoming, it is also true that, the various committees meeting at the bis also have become significantly more proactive in recent years. this will become evident below. as for future challenges to the current process, the first complication is the need to involve participants from emerging markets. hong kong and singapore are already the fourth and fifth largest foreign exchange markets in the world and other financial markets are expanding rapidly elsewhere. the growing industrial might of countries like korea, china, brazil and others must also be recognised, even if recent events in asia suggest that there can be setbacks along the way. if the credibility of the decision - making process rests on the involvement of national experts from jurisdictions most affected by the decisions taken, then input from emerging markets will be increasingly important. the issue is how to reconcile such an expansion with the maintenance of the intimate club - like atmosphere ( also involving shared values and shared conceptual frameworks ) that facilitate agreement and decision - making on the basis of consensus. a second important complication is the breaking - down of the barriers between different markets and different kinds of financial institution. not only are national regulatory frameworks generally based on such distinctions but so also are international committees. at the very least, there needs to be a channel for communication among such bodies as the basle committee on banking supervision, iosco and the international association of insurance supervisors. the recent decision in the united kingdom to consolidate all forms of financial supervision in the hands of a super - regulator may presage a more radical solution to this problem, but one which raises still other complications. in particular, the decision to site this regulator outside the bank of england, but to give the bank responsibility for overall systemic stability, raises the question of overlapping mandates for those two bodies. again, there may be international implications if non - central banks come to play an increasingly important role in the bis process. similarly, the introduction of the euro and the establishment of the european central bank raises the question of future representation on the various bis committees. the answer to this will presumably depend on the nature of the relationship which evolves between national supervisors and the supranational european system of central banks. 24 a final challenge has to do with managing the balance of influence between public sector and private sector representatives in the process. while in the past public sector participants generally made proposals and the private sector responded, increasingly the opposite is true. 25

mario draghi : “ we need a european economic government ” – interview in handelsblatt interview with mr mario draghi, governor of the bank of italy and chairman of the financial stability board, in handelsblatt, germany, conducted by mr hermann - josef knipper and mrs katharina kort and published on 19 march 2010. * * * handelsblatt : the whole europe is worrying about the greek crisis. what can greeks do to sort out its financial problems? mr draghi : i think the best and only thing they can do is to come out with a credible fiscal adjustment plan to be implemented promptly. the more delayed the commitments are, the less effective they are on reducing spreads on government bonds. the quicker they do it the better, and i should say they started doing. the commission and the ecb, and the imf to some extent, were involved as well. they must have been persuaded by the fiscal plan. of course we have now to monitor its timely implementation because that is as important as designing it. greeks have clearly seen there is a political price to pay and that it is unavoidable. handelsblatt : are you confident in the greek plans? mr draghi : yes, but i would like to see its implementation. handelsblatt : do we need stricter rules? mr draghi : yes, we obviously need stricter rules. it too early to specify which ones, but the greek crisis has shown that this construction has to be made more resilient. handelsblatt : what have you in mind? mr draghi : my opinion does not differ from the one expressed by your minister of finance, mr. wolfgang schauble. the first thing to bear in mind is that we were able to create a pillar of stability with the euro and we have to do everything to preserve it. no matter what many critics say, we had low inflation, low financing costs and we have been amazingly protected by the world turbulence because we had the euro. so we have to preserve the stability and the credibility of this concept. the greek crisis has shown that this construction has to be made more resilient because it has shown potential cracks. handelsblatt : what can be done to make the euro stronger? mr draghi : first of all we should ask ourselves why are markets so nervous, not only with greece but also with other countries. incidentally the spreads have gone up also on