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, transparency in all respects is necessary in order to make informed investment decisions. for example, the ecb welcomes the initiatives to create central counterparties for credit default swaps and expects to see concrete results. third, although business cycles are a common characteristic of market economies, public authorities should shape the economic order in ways that limit the probability and extent of future crises. in this context, regulatory and supervisory bodies have to ensure that their regulations and actions do not amplify business cycles. the current review of capital requirements in the financial sector is an important device for making risk measurement and management more effective and comprehensive. guidance concerning liquidity risk management has already been published. moreover, a debate on improvements in accounting rules is ongoing. in this respect, fair - value accounting rules should be changed to reduce a tendency to magnify boom - and - bust cycles. marking - to - market practices provide timely and relevant information on the state of financial firms under normal market conditions. yet, they may also trigger negative feedback effects when markets are disrupted, as financial institutions may be required to sell assets into falling markets, exacerbating the asset price decline. furthermore, accounting rules should support banks in building buffers during good times against future losses. see reinhart and rogoff ( 2008, 2009 ) for a comprehensive overview of financial crises and their impact on real gdp. responding to the financial crisis by supporting trust in the financial system, by preventing constraints on credit supply and by addressing the shortcomings in the financial system that i have just mentioned – these are our most immediate concerns. at the same time, we must not forget that the long - term prosperity of the european union does not only depend on a sound financial system. in order to increase europe ’ s long - term growth potential, to promote the creation of jobs and to increase the resilience of the economy to shocks, the implementation of the lisbon strategy for growth and jobs remains of key importance. in particular, investments in innovation, education, qualification of the labor force, and competive markets should become the focus of policies again. 4. conclusion let me summarise the main points : we are experiencing a severe financial crisis that has started to show substantial spillover effects to the real economy in the euro area. we have seen that european policy - makers have lived up to their responsibilities and acted in a swift and concerted manner. at the same time, we have to acknowledge that we are going through a phase of