european securities and markets authority ( esma ). the esrb has the task of preventing crises in the financial system. its work aims to identify risks to the stability of the financial system and, when necessary, to issue warnings or recommendations. 6 one important element in the the g20 ( eng. group of twenty ) is a group of nineteen major economies and the europeiska unionen. sverige is not included in the g20, but participates indirectly in the group ’ s work through its membership of the eu. financial stability board ( fsb ) is an international body that monitors and makes recommendations about the global financial system. fsb was established in 2009 and replaced the financial stability forum. the board includes all countries in the g20, including the eu, and hong kong, netherlands, singapore, spain, switzerland and a number of international organizations and groups. the general board of the esrb consists of the central bank governors and the heads of the supervisory authorities in the european union. the riksbank participates actively in the esrb ’ s work. the governor of the riksbank, stefan ingves, has been appointed chairman in one of the two advisory bodies in the esrb, the advisory technical committee. this means that he is also included in the steering committee that prepares the general board ’ s meetings and monitors the esrb ’ s current work, and in the advisory scientific committee, which is the other advisory body. bis central bankers ’ speeches continued financial stability work is formed by stress tests of the banks. during the financial crisis, both the us and european authorities implemented and reported such stress tests. their aims were to increase transparency concerning the banks ’ risks, to increase confidence in the sector, and to push the banks into increasing their capital bases. the next european stress test will be reported this june. the swedish regulations for the financial sector need to be strengthened the swedish regulations for the financial sector also need to be strengthened. consequently, the executive board and general council of the riksbank have, in a communication to the riksdag, urged the riksdag to assign the government to carry out a thorough review of the regulations. 7 the starting point for this is that we need a cohesive and effective regulatory framework that allows us to better prevent and manage crises in the future. firstly, the mandates and roles of the authorities involved are unclear. as the regulations are currently written, responsibility for financial stability is shared by the government, finansinspe

a leading role in the international monetary system : • in europe international investors find sophisticated financial markets encompassing a broad range of products and maturities. structural changes in the international financial markets over the last fifteen years have worked to the detriment of the dollar. they have resulted in a rising market share of european currencies. • given roughly equal economic potential, the european union is more closely integrated in the international division of labour than the united states. that suggests that the demand for euros as a transaction currency will be strong. • the european central bank will be independent of political instructions. it is committed solely to the priority of internal monetary stability. • the potential for excessive budget deficits is strictly limited by the treaty of maastricht and the stability and growth pact. • the maastricht treaty has noticeably fostered stability - consciousness in europe. inflation performance here is better than ever before. only countries which can show evidence of long - standing stability are supposed to participate in monetary union. • the euro can take up the torch from some illustrious currencies. that applies particularly to the deutsche mark - - today the world ’ s second biggest reserve currency, after the dollar. of course, ultimately the development of the euro will hinge on whether it proves lastingly stable and to that extent can assume the legacy of those currencies which are already stable today. but all those involved are quite convinced : the euro has to be a success. despite all the headway made up to now, however, a great deal remains to be done. in the forefront are the sustained consolidation of public finance and the dismantling of structural rigidities. i am sure these needs are increasingly being recognised. anyway, there is certainly a good prospect of the euro duly playing its role of being an international investment, reserve and transaction currency alongside the dollar. that is, after all, in the best interests of europe, the united states and third countries alike.