flexible procedures that do not penalize countries that respect the rules of the union. the progress of troubled countries in financial restructuring and structural reform must be accompanied by the undertaking of the european authorities to orient the markets ’ assessments. bis central bankers ’ speeches at the same time, it is necessary to resist the re - nationalization of financial systems. measures taken from a purely national standpoint could severely hamper the working of the euro area. we need to speed up the transition to a uniform system of financial sector rules and oversight. this should be accompanied by common guarantee and insurance mechanisms that can reassure savers and investors and prevent flights of capital. rapid progress in setting up a european fund for the resolution of banking crises would help to dispel uncertainty. 8. second, consolidation measures were implemented in a number of euro - area countries to restore the markets ’ confidence in fiscal sustainability. to varying degree these interventions were accompanied by structural reforms to increase potential growth and avert a downward spiral of deeper recession and deteriorating public finances. in the case of italy, action on the public budget has been rapid and decisive. structural reform has met with more resistance, but some important results have nevertheless been achieved. current forecasts put italy ’ s budget deficit for 2012 below the 3 percent ceiling ; next year the budget should be near structural balance and the public debt - to - gdp ratio should begin to fall, thanks in part to the completion of the pension reform. there is a large and growing primary surplus ; current expenditure net of interest payments has been falling in real terms for two years now. however, the recent fiscal consolidation consisted chiefly of tax increases. this burden can be sustained only temporarily. a stronger and more incisive fight against tax evasion and the implementation of spending cuts are the indispensable premises for the necessary reduction of tax rates. if expenditure savings are targeted to removing inefficiencies and if they are equitable, they will not hamper growth but should stimulate it. on the structural front, in italy more has been done since the summer of 2011 than during the previous decade. work has begun on a vast scale with reforms to remedy the structural deficiencies that are holding the italian economy back. measures have been adopted in such crucial areas as competition and regulation, business environment, civil justice and infrastructure development. the reform of labour market regulation and the social safety net now in course of approval by parliament aims at attenuating labour market dualism by altering the relative economic advantage of temporary

credit information system for enterprises and individuals. credit records were created for 13 million enterprises and nearly 600 million natural persons, including information of their borrowing activities and law - compliance in environmental protection etc, facilitating their economic and financial activities and promoting economic and social harmony. banking financial institutions have included inquiry into the credit information system as an indispensable step in pre - lending examination. some regions mandate that personal credit reports should be referred to when reviewing candidacy of deputies of the national people ’ s congress and delegates of china people ’ s political and consultative conference and admitting public servants. authorities in charge of human resources, social security, environment protection and quality inspection and quarantine also access the credit information system for information that will help them with industrial credit building and law enforcement. the credit information system, while exposing and preventing financial risks, promoting the deepening of china ’ s financial sector and improving the international competitiveness of china ’ s financial sector, contributes to the improvement of the social credit environment and the healthy development of economy. today the national credit information education month is kicked off in beijing. we hope the event is the just the beginning of credit knowledge dissemination and the improvement of credit awareness. the pbc will continue to support and actively engage itself in the building of a credit system in beijing so as to push forward the reform and development of beijing ’ s financial sector. this event takes the theme of “ keep good credit records and enjoy a happy life ”. if you want to know more about credit information, how to build good credit records and etc., you are welcome to join our activities in the education month. i wish the education month a complete success.