scheme should now operate in practice. the guarantee will be provided for two years on commercial terms. the pricing of the guarantee and the terms and conditions are critical. the primary consideration underlying this decision is to ensure financial stability at minimum cost to the taxpayer. for instance, the price should reflect a market - based assessment of the benefits to the banks covered by the guarantee and thereby minimise any impact on banks not covered by the guarantee ; it should minimise moral hazard implications such that the banking system will not take on additional risks on the back of this guarantee. designing such a scheme that takes account of these various principles is a complex task and work is at an advanced stage and will be completed over the weekend. the central bank, as part of the eurosystem, is actively involved in the provision of significant liquidity to credit institutions. we are also actively involved in international fora that are discussing solutions to the global crisis. internationally, liquidity conditions remain difficult and the likely duration of the crisis in international markets remains uncertain. accordingly, the outlook for the global economy remains uncertain. against this international background, and alongside a necessary rebalancing of our economy after more than a decade of very strong growth, the irish economy is entering a difficult period. we have shown in the past as a country that we can face up to difficult challenges and i suggest it will be no less on this occasion. it we adopt the correct decisions now, the medium term outlook for the economy is good.

which the ecb is already undertaking. but this goes beyond monitoring and analysis : macro - prudential supervision includes developing early warning systems for the risks in the financial system ; it includes conducting macro stress - testing exercises ; and it also includes an advisory role on financial regulation and supervision from a financial stability perspective. importantly, effective macro - prudential supervision depends on access to data and its translation into concrete measures. access to relevant data is essential for the assessment of risks and vulnerabilities in the financial system. this is why such access must be part and parcel of a well - functioning arrangement for macro - prudential supervision. two issues need to be considered here. first, there is a need for a higher degree of transparency as regards the activities of financial institutions and markets that are relevant from a financial stability perspective. supervisors and financial institutions have a role to play in enhancing transparency in their domains. to mention a specific example, we very much welcome the current dialogue between the ecb and cesr on the possibility of creating a standard for reference data on securities and issuers, with the aim of making such data available to policy - makers, regulators and the financial industry through an international public infrastructure. such an infrastructure would enable all interested parties to produce more timely analysis of increasingly complex financial markets, especially in times of turbulence. second, central banks need to have access to the supervisory information that is essential for their financial stability assessments. central banks and supervisors will also have to work together to establish an operational agreement for the information flow in both directions. this is not always straightforward in europe given the multitude of actors involved, but here, too, current developments give us a clear mandate, even an obligation, to improve the information flow. the ecb / eurosystem stands ready to perform additional macro - prudential supervisory tasks. with our financial stability analysis, which has been well established over a number of years, we have already laid important foundations for such a role. conclusion let me conclude. i have mentioned the lines of defence established by central banks and governments, to safeguard, respectively, liquidity and solvency in the financial system. the reform of the regulatory and supervisory framework at the eu and international levels must substantially enhance the stability of the global financial system. the system must strengthen itself and build up its own defences. i propose a strengthening of the financial system that focuses on three goals : long - term sustainability, improved resilience and a holistic perspective. the eu has the