##p, the so called “ six pack ”, and bis central bankers ’ speeches the fiscal compact. but given past experience, rigorous implementation of the new rules is crucial. germany has set an example by introducing a national debt brake in 2009. it now has to set an example by actually sticking to these new rules. finally, we have to further increase the resilience of the financial system. this is surely one of the global lessons we have learned from the financial crisis, but it is especially important in the context of the euro area, where contagion spread primarily through the financial system. therefore, it is essential to ensure that agreed financial reforms are implemented rigorously, in a timely manner and in a way which promotes consistent results. we must not lose momentum in completing the first round of financial regulatory reform since the start of the financial crisis, and i am glad that this is one of the priorities of the mexican g20 presidency. it goes without saying, however, that financial regulatory reforms will – by their very nature – never be definitive or conclusive. 5. conclusion ladies and gentlemen, let me sum up the main points of my speech. i talked about two peculiarities of emu that contributed to the sovereign debt crisis – the most important one being the combination of a single monetary policy and national fiscal policies. i argued that higher “ walls of money ” can buy time, but that time must be used to tackle the roots of the crisis. this includes consolidation of public finances, structural reforms and better rules at the european level. germany has been a stability anchor in containing the crisis by supporting the various rescue mechanisms, but the conviction that tackling the structural causes of the crisis is both indispensable and holds out the promise of success has been the essence of the german position throughout the crisis. in this regard, we have seen some progress over recent months. nevertheless, success depends on rigorous implementation of the agreed measures and rules. personally, i am confident that, by following this course, we will eventually contain the crisis and that the euro will remain a stable currency. bis central bankers ’ speeches

jens weidmann : containing the sovereign debt crisis – germany's role and contribution special address by dr jens weidmann, president of the deutsche bundesbank, at the highlevel public - private sector conference, g - 20 agenda under the mexican chairmanship, mexico city, 24 february 2012. * * * 1. introduction ladies and gentlemen first of all, i would like to thank secretary jose - antonio meade, governor agustin carstens and managing director charles dallara for the invitation to deliver a speech to such a distinguished audience. it is the second time since 2003 that mexico has hosted the g20. a lot has changed since then, however. emerging market economies, including mexico, have significantly increased their weight in the world economy. at the same time, the role and the standing of the g20 have also changed appreciably. the g20 ’ s upgrade among the global fora is partly due to the worst financial and economic crisis in decades, which hit the world economy in autumn 2008. although this crisis largely originated in the advanced economies, it may also have significant implications for emerging market economies. for example, low interest rates in advanced economies can swell capital flows to emerging market economies, while distressed banks may curtail their cross - border investment. moreover, an economic slump in the advanced economies squeezes emerging countries ’ export chances. mexico has assumed the g20 chairmanship at a time when the financial crisis, and in particular the sovereign debt crisis in the euro area, are putting a severe strain on global growth. progress on the g20 agenda could contribute significantly to avoiding another global recession and to promoting sustainable global growth. i am very confident that the mexican authorities will make this a successful presidency and i am looking forward to attending the g20 meetings during the mexican chairmanship. i would like to focus my remarks on what is currently still the most severe risk for global growth, namely the euro - area sovereign debt crisis. in particular, i would like to say something about the specifics of emu – europe ’ s economic and monetary union – and the role of the euro area ’ s major economic player germany. let me start by correcting a popular misconception about germany, namely the mistaken view that germany, while itself managing to dodge the flames of the current crisis, is now selfishly refusing to come to the aid of the stricken countries by acting as chief firefighter. let us take a look at the facts. first, germany is doing a