basel liquidity standards was met by the required banks, with nearly all others having met this regulation in advance. in addition, the levels of corporate and household indebtedness are moderate, and as a share of gdp well below the figures observed in other emes and in aes. 6 furthermore, risks from corporate foreign - currency liabilities are alleviated by long amortization periods, fixed interest rates, natural hedging and the prudent use of derivatives. it is also important to note that a comprehensive framework has been set in place for monitoring financial stability risks. on the other hand, risks must be carefully assessed, particularly in view of the difficult external environment. for these reasons, it will be essential to persevere in the strengthening of the macroeconomic framework and in the implementation of any regulatory measures required to cope with those risks. during the period 2010 – 2014, the corresponding figure was around 36 percent. with the increase in tax revenues, the drop in oil prices and the reduction in oil output, the share fell to 19. 3 percent in january – november 2015. see institute of international finance ( 2015 ) : emerging market debt monitor – update, december. bis central bankers ’ speeches fourth, a major effort of structural reform. the potential rate of gdp growth in mexico during the last decades has been insufficient to meet the population ’ s needs. the measures of structural reform adopted since late 2012, considered by the oecd as the most ambitious among the organisation ’ s membership, 7 have been focused on overcoming this problem, by increasing both private investment and productivity. it is worth to highlight the broad - ranging scope of such efforts, as they comprise not only several key sectors of the economy, but also measures aimed at improving the institutional framework. even though the full impact of these structural changes on potential gdp will take time to materialize, some effects are readily visible in a number of areas. these include, among others, a more flexible labor market ; increased competition in several sectors of the economy ; a fall in the prices of some widely used key inputs ; higher private investment in areas such as telecommunications, gas and electricity generation ; widespread participation of private firms in oil field auctions ; and a more important role of the financial system, through both private and public intermediaries, in supporting economic growth. two additional implications of the policies implemented are worth noting. according to the world bank, the business climate in mexico has improved significantly in recent years, to levels close to

taxes and expenditure cuts to confront the unsustainable path of projected public debt, and the implementation of new regulations to prevent financial crises. to some extent, this environment of uncertainty may have partly induced the recent reduction of producer and consumer confidence. additionally, the european monetary union ( emu ) is severely affected by the fiscal fragility of some of its member countries, which since the financial crisis have exhibited sharp rises in their public debt - to - gdp ratios, with projected paths that are judged to be unsustainable. some states have already received substantial financial support from the european community and the international monetary fund, and are implementing strict fiscal and structural adjustment programs. however, the perception of credit risk of the corresponding governments, as summarized in the spreads paid for credit default swaps, has continued to portray the deteriorating trend observed since 2010 and has reached worrisome levels. several concerns apparently lie behind market skepticism surrounding remedial actions in the emu. one is the difficulty of resolving the troubled governments ’ debt burden through austerity programs and ever - increasing support funds. another factor is the negative impact that the worsened public finances of any country can have on others within the union, given the fact that their financial systems are interlinked and their institutions, notably banks, are significant holders of government bonds. contagion fears have spread to other regions outside the emu, where financial intermediaries may also have substantial exposures to european sovereign bonds, either directly or indirectly. in the past weeks the urgency of finding a solution to these problems has become even clearer. uncertainty on future developments in the monetary union hinders growth prospects in this area and fuels sharp volatility and an investor rush to safety, factors that have recently deepened in international financial markets. policy challenges the existence of fundamental factors that, to a large extent, explain the meager growth of the world economy poses important challenges to policy makers. first, short - term economic policies are facing significant limits in advanced countries. the high and rising public - debt ratios in many economies call for substantial fiscal consolidation efforts in order to make public finances sustainable and, hence, supportive of financial stability and long - term growth. monetary policy is already extraordinarily accommodative, and authorities will need to continue monitor the anchoring of low inflation while at the same time remain ready to function as lenders of last resort to guarantee the integrity of their payment systems. as noted earlier, slow growth after the crisis seems