be approved by all euro area governments. second, past fiscal slippages would be automatically corrected in upcoming budgets without any room for discretion via the introduction of constitutional rules similar to the german “ debt brake ”. third, all member states would also agree to implement fines and sanctions in a quasi - automatic mode. finally, with the introduction in 2013 of a permanent crisis resolution mechanisms, the european stability mechanism ( esm ) – i shall come back later to a more detailed discussion of the esm –, those countries slipping over their macroeconomic adjustment programmes would be placed under financial receivership. the institutional arrangements at both national and supranational level would also have to be strengthened. at the national level, independent budget offices would ensure reliable forecasts – a prerequisite for sound planning and implementation of budgets. at the euro area level this needs to be complemented by an independent entity with a clear mandate and a strong institutional framework to assess the implementation of fiscal rules. for instance, some form of european budget office or “ ebo ”, which could potentially form the nucleus of what could become over time, and in a gradual manner, a european ministry of finance. strong and independent institutions at the euro area and national levels serve to enhance transparency. they bring the necessary pressure to bear to ensure the conduct of sound policies and effectively counteract possible tendencies towards a lenient implementation of fiscal rules at the level of individual member states. in addition to the “ six - pack ” in march 2011 the heads of state or government of the euro area agreed on a “ euro plus pact ” to strengthen policy coordination in order to improve competitiveness and convergence. under this agreement euro area governments commit to use a set of common indicators to regularly monitor each others progress in areas such as labour - market reforms, reforms to wage - setting arrangements and reforms aimed at improving the sustainability of pension, health care and social benefit systems. governments who signed the euro plus pact also committed to translate the rules set out in the stability and growth pact into their national legislations. the reform of article 135 of the spanish constitution in august 2011, which for the first time introduced the principle of budgetary stability into the fundamental law of the country, is a positive example of recent progress made in this area. the new architecture for financial supervision but as i said earlier, in the lead up to the present crisis governments were not the only ones to fail in their responsibilities. the functioning of our financial system also proved to have important shortcoming

##feiting has consistently been that there is no undue cause for alarm about counterfeiting, but that the public should remain vigilant in checking banknotes using the feel - look - tilt test, thereby denying criminals any chance of succeeding in their attempts at counterfeiting. this remains my message. in addition, we are also trying to identify any need for the provision of additional information and training to the general public and, in particular, to professional cash handlers, i. e. cashiers of shops and banks, which are normally frontline targets for counterfeiters. at the same time, the ecb has been stepping up the institutional framework for combating counterfeits. in this context, i should like to refer to the close co - operation on anti - counterfeiting issues that has been established between the ecb, europol and the european commission. moreover, co - operation agreements are about to be concluded between the ecb and interpol, and between the ecb and national central banks of acceding countries. before concluding, let me make a final remark. as you know, this is my last testimony before your committee. i have had the privilege to preside over the ecb for the past five years, guiding it from its very inception through a number of crucial - and successful - stages, such as the introduction of the euro in 1999 and, three years later, the euro cash changeover. both events were, in my view, major steps towards a europe “ united ever more closely ”, and i am honoured to have served the european public and the cause of european integration during these times. madam chairman, honourable committee members, let me convey to all of you my sincere thanks for our very fruitful co - operation over the past few years. while we may not always have agreed on all issues, i believe that our relationship was marked by mutual confidence and a truly co - operative spirit. i have enjoyed working with you and wish you, as well as my successor, much success with the challenges that lie ahead.