will give you just a few examples based on a set of ecb indicators on the level of integration in euro area financial and banking markets. • since the introduction of the euro, the cross - country standard deviation of interest rates in the interbank money market has plummeted. back in january 1998, one year before the launch of the single currency, this deviation stood at more than 130 basis points for overnight rates, at over 100 basis points for one - month maturities, and at around 50 basis points for 12 - month rates. since january 1999, however, these differences have rarely exceeded one or two basis points. • furthermore, there is significant evidence that euro area corporations are taking advantage of the possibility to appeal to a broader universe of investors in order to raise funds. as a result, the euro corporate bond market has grown significantly since 1999, and has the potential to grow even further, judged by a comparison with the us. in 1999, the outstanding volume of bonds issued by non - financial corporations was just 3. 9 % of gdp in the euro area and 24. 3 % in the us ; in 2006 it has increased to 12. 5 % but the us market is still one and a half times larger than in the euro area ( 21. 1 % ). • between 1997 and 2005 euro area residents doubled their holdings of equity issued in another euro area country – as a share of their total portfolio of shares issued in their own country and elsewhere in the euro area – to reach 29 %. instead, the share of euro area equity assets held outside the euro area remains much lower and increased only slightly. hence, since the launch of the euro there has been a portfolio reallocation from holdings of domestic equities to holdings of equities issued elsewhere within the euro area. • the share of long - term debt securities issued in the euro area and held by residents of other euro area countries has risen markedly. euro area cross border holdings of long - term debt securities have risen from slightly above 10 % in 1997 to nearly 60 % in 2005. • by contrast, integration in retail banking has been slow so far, although it has picked up in the last two years. with some notable exceptions, much of the consolidation in the banking sector has been the result of domestic mergers ; only in the last couple of years have cross - border banking mergers started to take place. in this respect, a number of euro area banks have considerably expanded their interests outside the euro area. however

the determination and perseverance of a series of visionary leaders. and we owe it to the effective interplay between european institutions. the european parliament played a crucial role at the pioneering stage. the parliament was the first european institution to make proposals for a single currency, back in 1962. and in the past ten years, since the establishment of the ecb, our institutions have maintained a very close and fruitful dialogue. this dialogue has involved over 50 hearings of the members of the executive board before this parliament. the dialogue between the parliament and the ecb is a very important exchange in terms of accountability, allowing the ecb to explain its decisions and actions to the general public and their elected representatives. ladies and gentlemen, during its first years of existence, the euro had to face major trials : the establishment of a sound and credible central bank and the creation of a stable new currency inspiring confidence. these challenges were overcome successfully and the euro is today firmly established. hence, this is certainly a time for celebration. but it is no time for complacency. current challenges are pressing, and new challenges will arise. the continued success of emu will depend on how these challenges are addressed. this is the main responsibility for all authorities involved. let me mention three major challenges. first, the financial crisis. the crisis has revealed fundamental weaknesses in the global financial system. we are playing an active part in the global efforts to address these weaknesses and redesign the regulatory and institutional framework. a lot of work remains to be done. second, economic union. the solidity of the single currency rests on two pillars : a monetary policy firmly geared towards price stability and a set of sound economic policies. the particular challenges on the economic front include the firm and credible implementation of the stability and growth pact, constant efforts to render our economies more productive, innovative and dynamic, and the avoidance of major competitive divergences within the euro area. third, enlargement. when we started out ten years ago, we were 11 countries. as of 1 january this year, we are now 16 countries. this says a lot about our historic endeavour. handling enlargement in the best fashion possible is a very inspiring and demanding challenge for all of us. the euro is a historic achievement. what matters most today is our responsibility for the future. new challenges are arising. if these challenges are faced with utmost lucidity and audacity, they can generate the powerful ideas which jean monnet referred to, and which