e. the regulation of individual financial institutions. both failed to address the risks arising at the systemic level, risks that could not be seen by looking at individual institutions and individual markets alone. there is broad agreement now that regulation needs to focus on the stability of the financial system as a whole, which is termed “ macroprudential regulation ”. “ entstehen speculations - krisen und in folge derselben vielleicht acute geld - und creditkrisen durch ubersturzungen des unternehmungsgeistes, so konnen solche krisen nicht von vornherein verhutet werden, weil das einzige mittel im maßhalten des unternehmungsgeistes lage und weil auf dieses mittel insoferne nicht gerechnet werden kann, als das jagen nach rasch erworbenem reichthume immer eine der hauptleidenschaften des menschen bilden wird. ” neue freie presse, may 22, 1870, p. 14. macroprudential policy is the use of prudential tools ( often the same tools as in microprudential regulation, like capital requirements ) with the explicit objective of promoting the stability of the financial system as a whole and not necessarily of the individual institutions within it. to be able to do so, macroprudential regulation explicitly takes into account the interlinkages between financial institutions and financial markets as well as the procyclicality of the financial system. there is also broad agreement that central banks will play a crucial role within the new regulatory framework, which is already evidenced in the central position that the ecb and the eu central banks will take in the european systemic risk board ( esrb ), a newly created body set up to assess and prevent potential risks to financial stability in a wide range of areas, ranging from the banks ’ financial situation to the potential existence of asset bubbles or the smooth functioning of market infrastructures. but as we all know, the devil is in the details. what exactly should central banks be in charge of and how are they expected to fulfil their tasks? these issues are still very much open. in the next two days of the conference, we will have the occasion to look at the intersections of monetary policy and financial stability from various angles. as the title of

klaus liebscher : the euro - a solid basis for the future of europe speech by dr klaus liebscher, governor of the oesterreichische nationalbank, at the 3rd yepp congress, vienna, 6 april 2001. * * * ladies and gentlemen! i regard it a privilege - and pleasure - to share the podium with our minister of foreign affairs, ms ferrero - waldner, who has shown to the austrian people and to her european collegues, what true devotion to the spirit of european integration is, also when, at times, the wind blows in your face. i am very happy about the opportunity to share some views with you on an issue which, i believe, is of paramount importance for our future. " the euro is a powerful symbol of european identity and has the potential to consolidate and propel progress towards european integration. " ladies and gentlemen, let me use the next half hour or so to explore with you why i believe that this statement captures the essence of economic and monetary union and of the euro. 1. the euro in the broader historical context of european integration ladies and gentlemen, as europe lay in ruins after world war ii, the question arose of what was to become of europe. in his zurich speech of 19 september 1946, winston churchill was mapping out the way forward with his vision of a " united states of europe ". against the background of the emerging east - west conflict, fast action was called for. europe was too weak to restore itself. the newly founded organization for european economic cooperation ( which was later to evolve into the organization for economic cooperation and development, or briefly oecd ) coordinated the implementation of the so - called marshall plan of us aid to european reconstruction. as the threat of communism was perceived to rise, the united states were actively supporting the ( western ) european unification project, hoping to re - establish free democracies and prosperous trading partners in europe. within europe, the drive for integration was primarily motivated in the desire to remove the risks for future wars. the important goal was to re - establish a working relationship between the western alliance and germany, without arousing the fears of germany ’ s former enemies. it was against this background that robert schuman, at the time france ’ s minister of foreign affairs, held a speech on 9 may 1950, which was to enter the history books as the birthday of the european community. in this speech, robert schuman proposed to unite german and french coal