Europe is one of the major building blocks of the global economy and, as such, needs to play a very active role in fostering sound financial globalisation. I would like to highlight two main priorities in this respect. First, we should further step up our efforts to build a truly integrated, safe and highly competitive European financial market. The tenth anniversary of the ECB one month ago gave us the occasion to take stock of the achievements in European financial integration over the past decade. We were proud to find that significant progress has been achieved and that the introduction of the single currency has acted as a major driving force in this regard. However, as I would like to underline today, further efforts are necessary to make the single financial market a reality. While financial integration is first and foremost a market-driven process, authorities can play an important supportive role in a number of ways, for instance by acting as catalysts for private sector initiatives and by reducing policy-related obstacles to cross-border finance. The Eurosystem can also provide central banking services that support the financial integration process. I will highlight a few areas, which, in my view, particularly merit further public sector action. Second, Europe should also contribute actively to safeguarding the resilience of the global financial system. At the present juncture, the main priority in this regard is to address, from a systemic point of view, the global financial system weaknesses which have been identified during the ongoing financial market correction.

These include especially the adequate involvement of all relevant host authorities; a coordinating role for the home country supervisor, with due respect to the responsibilities of host authorities; and arrangements – to be devised by the EU committees of supervisors established under the Lamfalussy approach – to foster consistent procedures and policies across different supervisory colleges. Lastly, closer ongoing cooperation should be pursued not only between supervisors, but also between supervisors and central banks. Such joint work, to be pursued at all levels (nationally, regionally and globally), would in particular aim to enhance the integration of supervisors’ micro-prudential functions and central banks’ macro-prudential functions in the assessment of possible financial risks and vulnerabilities. This would make a significant contribution to raising awareness of emerging financial system imbalances at an earlier stage and devising effectively coordinated public sector action to address them. Furthermore, given the growing role of correspondent and custodian banks in payment and settlement systems, closer cooperation between supervisors and central banks, in their role as overseers, is increasingly important to ensure a comprehensive and consistent treatment of the respective financial risks. Conclusion Mesdames et Messieurs, permettez-moi de conclure mon intervention. La mise en place d’un marché des capitaux européen sûr, efficient et totalement intégré est une contribution essentielle que l’Europe peut apporter dans le cadre d’un processus harmonieux de mondialisation financière. Des progrès significatifs ont déjà été réalisés dans ce domaine, mais de nouvelles avancées doivent être réalisées.