now, after almost 12 years, we also have a track record. as you know, the most important issue for a currency is to keep its value. there is one single measure for this, which is the average inflation rate over a medium or long - term horizon. this is how we measure price stability. i will be very precise. the average annual inflation rate in the euro area since the inception of the euro almost 12 years ago has been 1. 97 %. the european central bank has therefore been fulfilling its mandate, which is to keep inflation below, but close to, 2 % over the medium term. with all the challenges we have faced since 1999 – the cash changeover, the oil price spikes, the internet bubble, the turbulences in the aftermath of 11th september and, of course, the global financial crisis – maintaining price stability is a notable achievement. what is more, looking ahead, inflation projections and inflation expectations are well anchored in line with price stability. the launch of the esrb my main topic for today is macroprudential oversight and the new body that the european council and the european parliament have decided to create : the european systemic risk board or esrb. the legislation has been finalised yesterday and the esrb will soon become reality. i am honoured to speak to you today not only as president of the ecb but also in my future role as chair of the esrb. the new european body will be part of the new european system of financial supervision and it will be located here in frankfurt. the city can therefore be proud to host three european authorities : the ecb, the european insurance and occupational pensions authority ( eiopa ) and the esrb. the function of the esrb will be to provide macro - prudential oversight of the european union ’ s financial system. it will bring together the governors of the national central banks, the new european supervisory agencies ( esas ), the european commission and the national supervisory authorities of all 27 member states. the establishment of the esrb was first recommended in february 2009 in the report of a high - level group chaired by jacques de larosiere. the new institution is backed by a remarkably strong consensus between the european commission, the european council and the european parliament. in the parliament, the legislation underpinning the establishment of the esrb was approved with an overwhelmingly large majority of 80 %. this gives a strong backing to the esrb and its mission. the ecb will contribute to establishing the

. this is as much to the advantage of all players in the industry as it is to everyone in the wider economy. second, integrating a macro - prudential perspective should lead to better regulation. in essence, systemic risk is the outcome of the actions of individual market players for the system as a whole. regulation, which traditionally focuses on individual market players, can be improved by taking account of this potentially disastrous side - effect. initiatives such as the counter - cyclical buffers and possible capital surcharges or other equivalent measures for systemically important financial institutions fall into this category. the third reason for welcoming the esrb is that macro - prudential supervision could improve financial firms ’ own risk analysis. i trust that it will provide an incentive to internalise the system - wide dimension in the industry ’ s own risk models and stress - testing. ladies and gentlemen, less than two years after the publication of the de larosiere report, europe will have its own macro - prudential authority up and running. this is a remarkable achievement. we are now moving from designing the framework to implementing it. we have to make the enhanced resilience of the financial system our highest priority. i thank you for your attention.