##atement of the rules to which national budgetary policies ought to be subject so as to gain credibility beyond doubt. last week ’ s summit committed to enshrine these rules in the primary legislation. they will foresee that the annual structural deficit should not exceed 0. 5 % of nominal gdp. euro area member states will implement such a rule in their national legal frameworks at a constitutional level, so that it is possible to avoid excessive deficits before they arise, rather than trying to control them after they have emerged. prevention is better than cure. bis central bankers ’ speeches rules will also foresee an automatic correction mechanism in case of deviation. moreover, the leaders agreed on a numerical benchmark for annual debt reduction to bring down debt levels. they also agreed to sanctions that will apply automatically to euro area member states in breach of the 3 % reference value for deficits. the european court of justice may be asked to verify the implementation of these rules at national level. taken together, i believe that these decisions are capable of making public finances in the euro area credibly robust. but restoring financial markets ’ confidence also requires that investors be reassured that government debt will always be repaid and timely serviced. greece will remain a unique case, and a credible stabilisation mechanism, a firewall, will be in place and can be activated when needed subject to proper conditionality. the leaders unambiguously agreed to assess the adequacy of the firewall by next march. its objective is to address the threats to financial stability, and especially the risk of contagion between different sovereign debt markets. the leaders decided to deploy the leveraging of the european financial stability facility ( efsf ) at the earliest opportunity. at the same time they agreed that the efsf ’ s successor, the european stability mechanism, should come into force by july 2012. it is crucial that the efsf be fully equipped and be made operational as soon as possible. with this goal in mind, last thursday, the governing council decided that the ecb would stand ready to act with its technical infrastructure and know - how as an agent for the efsf in carrying out its market operations. conclusion let me conclude. the decisions of the european council summit, together with the six - pack approved recently by the european parliament, are a breakthrough for clear fiscal rules in our monetary union. however, the crisis has not ended yet. it is now important not to lose momentum and to swiftly implement

confidence that the euro will prove a stimulus for further economic and financial integration. the introduction of the euro banknotes and coins has not only enhanced price transparency, it will also highlight the fact that the european single market is not yet complete and that a number of regulatory, administrative or legal impediments to the free circulation of goods, the cross - border provision of services and to labour mobility still exist. it is my belief that the euro, as a visible symbol of european identity in everyday life, will increasingly bring these obstacles to light and stimulate efforts to eliminate them. in this way, the euro will accomplish one of the pre - eminent functions of the single currency, namely to " crown " the establishment of a single market in europe. finally, i should like to mention that this is my last appearance in this forum as vice - president of the ecb. i should like to thank the members of the committee on economic and monetary affairs for the very fruitful exchange of views, both in the context of my presentation of the ecb's annual report and on other occasions. this committee has indeed played an important role in bringing the euro closer to the citizens of europe.