level so as to achieve a level playing field. the fsb will monitor this by undertaking regular peer reviews among fsb members – both country - by - country, and by topic across the entire membership. the fundamental value of our peer reviews will be the dialogue and constructive engagement of our members towards the common objective of a well regulated, open, and market - based financial system. in a global context, it is of course critically important that standards are raised everywhere. in the fsb, we have embarked on a process to identify the non - co - operative jurisdictions that fail to implement internationally agreed standards in the prudential and regulatory area. we are developing a toolbox of measures that will incentivise adherence to reforms in these jurisdictions. we are working closely with the imf in these areas, which has a key role in surveillance of the global financial system, and, together with the world bank, are well - established assessors of authorities ’ implementation of key financial sector policies and standards. we will also collaborate closely with the new european systemic risk board and the european financial supervisory structures that have now been put in place. our shared goal is a stronger and more resilient international financial system in which threats to stability are engaged earlier, are better cushioned when they materialise, and where protections are adequate to give our citizens and countries confidence in an open and integrated financial system.

mario draghi : the social market economy and the solutions to the global financial and economic crisis remarks by mr mario draghi, governor of the bank of italy and chairman of the financial stability board, for the european people ’ s party high - level policy debate on " the social market economy and the solutions to the global financial and economic crisis ", epp statutory congress, bonn, 9 december 2009. * * * i am very pleased to be here to talk about progress in finding and implementing solutions to the global financial crisis. you have decided to focus today and tomorrow on issues that are critically important to our economies and our citizens. and i am honoured to have this opportunity to speak about where we are in terms of financial regulatory reform, what has been achieved to date and the priorities ahead. one year after the climax of the financial crisis, market conditions have eased significantly and a degree of confidence in the financial system has returned. however, the market reaction to dubai ’ s woes is a reminder that they remain unusually vulnerable to shocks. the crisis has implied a massive transfer of debt from the private to the public sector. fiscal positions have deteriorated across the board at an unprecedented pace. public deficits in the g7 countries have surged from 2 % of gdp in 2007 to 10 % today. the limits set by the stability and growth pact will be exceeded until 2014 at least for the euro area. although necessary and unavoidable, those extraordinary borrowing needs, combined with long - term fiscal challenges on healthcare, pension systems and climate change, will lead to public debt in excess of 100 % of gdp in oecd countries in 2010 ( up from 74 % in 2007 ). it is no surprise therefore that markets have been recently more sensitive to accumulating debt burdens in government and quasi - government sectors. sovereigns represent an increasing share of transactions in credit protection markets ( cds ), as market participants challenge the assumption that they are risk - free. government auctions have faced from time to time unsatisfactory demand, even for highly - rated issuers. sovereign cds premia remain volatile and elevated. markets also show more discrimination across countries. while developed countries come under funding pressure, emerging countries with low debt levels are now able to issue long term, as shown by the recent 50 - year bond of china, sometimes at fixed rate and in local currency, which was unimaginable just a few years ago. so there is a way out, but governments need to communicate cr