support the initiatives aimed at re - launching the single market to address the prevailing structural challenges faced by the eu economy. the single market is bis central bankers ’ speeches at the core of the union ’ s growth agenda. a widening and deepening of the single market should be viewed as an opportunity to raise the “ speed limit ” of the economy, which is highly warranted in the aftermath of the impact the financial crisis had on the european economy. moreover, completion of the single market is an essential ingredient of the required quantum leap towards a deeper economic union that is commensurate with the degree of economic integration and interdependency already achieved through monetary union. emu has led to a strengthening of trade integration and competition within the single market by enhancing market access, reducing the costs of cross - border activities and increasing price transparency. at the same time, a well - functioning single market is pivotal for the smooth functioning of emu. it allows for swift and market - based adjustment in case of shocks and facilitates the correction of economic imbalances. a well functioning single market also requires proper design and implementation of financial sector policies. in this respect, the establishment of a new eu supervisory architecture to introduce genuine macro - prudential supervision and to strengthen the micro - prudential oversight at the eu level was a prerequisite for enhanced financial stability arrangements. the establishment of the european systemic risk board and the european supervisory authorities is an important milestone in providing the appropriate incentives to avoid excessive risk taking in the financial sector and to promote a level playing field in support of beneficial financial integration within the monetary union. establishment of an eu framework for crisis management is an important complementary element of the new supervisory framework that still needs to be put in place. conclusion this is a large agenda already. what more would be needed for emu in the longer term? i have sketched out in my speech in aachen earlier this month some elements that in my view would warrant consideration in the design of a longer - term vision for europe. developing these elements in more detail would, however, be the topic of another speech. ladies and gentlemen, i thank you for your attention. bis central bankers ’ speeches

political weight to bear in an ever more globalised economy. « il est necessaire que meme ceux qui sont nes bien apres les annees 50 et 60 se rendent compte que l ’ union europeenne n ’ est pas un coup du hasard, qu ’ elle se fonde sur des necessites fondamentales de la vie entre les peuples de l ’ europe » ( on 11 december 1997, on the eve of the luxembourg european council ). bis central bankers ’ speeches there is a good basis for all of this – we can indeed take pride in our past achievements. having served as a member of the governing council of the ecb since the launch of the euro and as its president for almost eight years now, let me say that we have accomplished a lot : for example, companies in the euro area do not have to worry about price stability – i will come back later on this issue – and possible devaluations in the countries of their main trading partners. they face lower transaction and hedging costs. there is more price transparency and more ample access to finance, in general. since the start of the euro, employment in the euro area has risen by over 14 million, compared with about 8 million in the united states. adjusted for population growth differences, growth per capita in the euro area has been almost the same as in the united states over the past decade, at about 1 % per year in terms of gdp per capita growth. trade among euro area countries has also risen strongly. the value of exports and imports of goods within the euro area increased from about one quarter of gdp in 1998 to one third of gdp in 2007, with trade within euro area countries representing about a half of the total euro area trade. economic and monetary union the key to understanding the current challenges in the euro area is the specific construction of economic and monetary union. the coexistence of an achieved monetary union – the single currency, the single monetary policy and the eurosystem with the ecb at its helm – and of a largely decentralised economic pillar. indeed, member states are responsible for their fiscal and economic policies, but are called to treat them as a matter of common concern. those policies are subject to a european governance framework to ensure that they are fully compatible with the requirements of a single currency. our governance framework largely relied on the self - discipline of national governments, with hard constraints at the eu level only in those