the iia will open a new chapter of successful cooperation between our two institutions. in this context let me also welcome your positive vote on ms nouy ’ s nomination. following her final appointment by the council, she will become your main interlocutor on all matters related to the ssm as of january 1st. i would like to also address an issue which, i know, is as much a concern to you as it is to me : the gender balance at the ecb. today, 17 % of our management positions are filled by female staff. it is clearly not enough. this is why the executive board decided this summer to introduce gender targets aiming at 35 % women in management positions by 2019. and this is not an empty promise. the ecb has started to implement a diversity action plan that will help us attaining those targets. let me now share my thoughts on the process of completing emu. taking stock of the progress made towards a genuine emu as this legislature comes to the end of its term, it is an opportune time to reflect on what we have achieved in such a short space of time. not so long ago the euro area was facing an uncertain future. in the meantime, doubts about the integrity of the single currency have dissipated. notably, a roadmap for a genuine emu has been outlined encompassing four pillars : banking union, fiscal union, economic union and ultimately political union. through a concerted legislative effort the euro area, and the eu as a whole, has been put on a more stable footing. your institution has made a decisive contribution to this effort. the establishment of the single supervisory mechanism ( ssm ) represents probably the most significant change to the eu since the establishment of the single currency and i am happy to report the internal preparations are well underway. i strongly welcome the political agreement on the bank recovery and resolution directive you have reached with the council yesterday night. swift agreement on the other key component of banking union – the single resolution mechanism – is of paramount importance. i trust you will succeed in adopting the relevant legislation before your term comes to an end. these institutions are essential to implement the “ single rulebook ” in the years to come. looking ahead we will have a stronger set of rules bis central bankers ’ speeches for capital and liquidity. we will also have a new toolbox for the resolution of financial institutions. and we will have stronger national deposit guarantee schemes. banking union however is not a panacea for eliminating financial

jorg asmussen : exchange of views on the economic and social crisis in greece introductory statement by mr jorg asmussen, member of the executive board of the european central bank, to the committee on economic and monetary affairs of the european parliament, brussels, 27 march 2012. * * * responses to written questions on the economic and social crisis in greece by several political groups within the european parliament can be found on the ecb ’ s website. dear chairwomen, honourable members of the european parliament, the organisation of this hearing once again illustrates to what extent the launch of the euro has brought about economic interconnectedness : in view of the strong implications for the stability of the euro area as a whole, putting greece back on its feet is in the very interest of all of us. political interconnectedness could also hardly be better demonstrated than today. domestic policies have become european – which fully justifies to discuss them at european level, both in executive and parliamentary fora. why the greek adjustment programme is unavoidable the greek economic adjustment and its social implications are painful : there is no doubt about this. the question, however, is : how did greece get in such a situation and does it have any alternative? the major effort of adjustment reflects the severity of the macroeconomic imbalances that have accumulated over years in greece. misguided economic and fiscal policies, lack of structural reforms : all these policies undermined the sustainability of public debt and created a very large competitiveness gap. it is not the adjustment programme which is causing the recent decline in gdp. the current economic depression is an unavoidable correction of the substantial positive output gap that has built up until 2009. is there any alternative to the current adjustment? we do not help greece by creating false expectations. calls for loosening the fiscal stance are illusory. greece could hardly face larger financial constraints than at the moment : it has lost market access and can only draw on a fixed envelope for official support. there is only one way forward : restoring fiscal sustainability and competitiveness, which will, in turn, bring back sustained growth. this requires perseverance : perseverance in carrying out fiscal consolidation ; perseverance in implementing comprehensive structural reforms ; and perseverance in addressing the weaknesses of the greek banking sector. the efforts undertaken by the greek government and the sacrifices the greek public endured so far have been substantial. but there is still a long way to go. it is no secret that the programme