Draghi advocates govt reform

ROME: European Central Bank Governing Council member Mario Draghi said on Saturday that strains in financial markets stemming from sovereign debt concerns presented urgent challenges and called on governments to make firm and swift reforms.

"Relevant governments must play their part, by acting forcefully to strengthen fiscal positions and bolster competitiveness through structural reforms within concrete timetables," Draghi said in a written statement to the International Monetary and Financial Committee.

"At the same time, the financial industry must continue to repair and strengthen balance sheets to rebuild resilience to shocks."

Draghi, who was speaking in his capacity as Chairman of the Financial Stability Board (FSB), said the FSB would deliver a paper to the G20 summit in November proposing policy measures to improve the capacity of authorities to resolve failing SIFIs (systematically important financial institutions).

Copyright Reuters, 2011