of the eurosystem and the european commission, has embarked on the sepa initiative, and financial integration has been a strong driver. i will therefore reflect in the first part of my presentation on the significance of financial integration and the effect it has had on europe and, in particular, the payments industry. the next part of my presentation is related to the key components of sepa, which are the core achievements so far. in addition, i will address developments related to payment cards and to innovation separately, as they will require special attention in 2008. finally, i will conclude with the impact of sepa in a global context. i. financial integration the eurosystem ’ s interest in financial integration financial integration has been – and will be – a major driver for many changes in the banking industry at a global level and this is also the case for sepa. the eurosystem, which comprises the ecb and the national central banks of the euro area, has a keen interest in the financial integration and the efficient functioning of the financial system. 3 especially for the euro area, which is a “ local ” financial system, there are many barriers that prevent economic agents from investing or doing business – or at least hamper them considerably – in areas outside their “ home turf ”. by facilitating an open and integrated market economy with free competition, the eurosystem fosters the efficient allocation of resources. financial integration is particularly relevant to the four basic tasks of the ecb. it is of vital importance for the conduct of the single monetary policy, since a well - integrated financial in general, financial integration facilitates a better functioning of the financial systems. it allows a better channelling of funds from those economic agents that have a surplus to those which have a shortage. it also facilitates a better functioning of financial systems, whereby risks are traded, hedged, diversified and pooled more efficiently. indeed, financial integration is of global relevance, as it leads to an improved sharing and diversification of risk and lays the basis for an increased potential for stronger economic growth. the eurosystem has included the promotion of financial integration in its mission statement in order to underline its determination in this respect. system enhances the smooth and effective transmission of monetary impulses throughout the euro area. furthermore, it is highly relevant to the eurosystem ’ s task of contributing to the safeguarding of financial stability and the promotion of the smooth operation of payment systems. finally, financial integration promotes the development of the financial sector

jean - claude trichet : interview with l ’ agefi hebdo interview with mr jean - claude trichet, president of the european central bank, conducted on 20 april 2011 by mr philippe mudry and published on 18 may 2011. * * * agefi : a survey of our readers on the future of finance reveals deep scepticism about the nature of the benefits resulting from regulation and also about its possible contradictions. what do you think? jean - claude trichet : considering the gravity of the situation which the international community has had to face, the lingering scepticism in some areas is understandable. it is important to understand that we had to cope with a crisis of extraordinary severity in 2007 and in 2008 which intensified following the collapse of lehman brothers. without the unwavering determination of the central banks on the one hand, and of governments on the other, and without significant exposure to budgetary risk, on both sides of the atlantic and in all the developed countries, we would have faced a very deep depression and the worst financial crisis since the first world war! our calculations at the european central bank and throughout the european system of central banks tell us that, in total, some 27 % of gross domestic product, in terms of risk to the taxpayer, had to be mobilised on both sides of the atlantic in order to avoid the worst. fortunately, of course, this risk was not converted into losses in the majority of cases, and many such cases have yielded profits ; nonetheless, without this risk - taking we would have been facing a terrible disaster. the central banks as well as all the governments of the developed and the emerging countries have been very determined. inasmuch as disaster has been averted, a number of partners, in the private sector essentially, feel that there is no point after all in making sweeping improvements to the rules and regulations governing the financial sector, in particular the prudential rules. this is not our view at all. the central banks all consider that it is absolutely essential to remain aware of the fragility of the financial system and to implement the reforms we need. we would be unable to address a situation as severe as the one in september 2008 a second time. when you look at the path followed since 2007 in terms of financial regulation, what strikes you as being the main benefits, but also current limits, of the process prompted by the g20? – the g20 ’ s action follows two major pillars : financial regulation and