function entirely without problems. at times, there has also been considerable criticism of the players on the international financial arena. although this may sometimes be warranted, unfortunately it all too often stems from the opinion that financial operations are a bad thing. i have therefore tried to describe today the tasks carried out by the financial system in society. these not only make our daily life easier, but also provide a crucial contribution to economic development. it is therefore important that our solutions to the problems we see in the financial system do not destroy these welfare - creating mechanisms, but instead contribute to reinforcing them. for the same reason, it is important that countries pursue a good domestic economic policy. sound government finances and sustainable price stability, combined with structural reforms that increase the flexibility of the economy, will reduce fluctuations in exchange rates and capital flows and thus increase the financial markets'capacity to contribute to the development of the economy. thank you.

turn for a common payment system in order to handle the payments connected with the policy ’ s implementation. the arrangements whereby all the national systems are interlinked is called the target system. in the new system, a cross - border payment will normally be made in a matter of seconds, whereas at present in the best case it takes a whole day. the main objective of target is to enable the ecb to implement monetary policy but the new system will also provide a new “ highway ” for commercial transactions. the extent to which banks and other enterprises use the system will probably depend on the price. all the national central banks in the eu area can join target, whether or not their country is in the euro area. but there is a considerable risk of countries outside the euro area being in a worse position, for instance due to restrictions on intra - day borrowing in euro to counter fluctuations in the payment flows. we have vigorously opposed this threat of discrimination but the issue, along with others, has been deferred and will now be decided by the countries that join the euro area from the start. 3. legal framework a clear legal framework for the euro is essential. economic values, for instance in contracts, bank accounts and pension agreements, must be guaranteed during the changeover period from 1999 to 2002, when the euro and national currencies will exist side by side. the so - called continuity of contracts is regulated in one of the euro statutes but amendments to national laws will also be needed. another legal issue concerns the national central banks. as regards the riksbank, the maastricht treaty calls for a more independent statutory status. this means, for instance, that the status of the governor must be clarified ; grounds for his or her dismissal will have to be explicit, e. g. serious misconduct, etc. neither will the riksbank be able to accept directives, except of a statutory nature, from others, e. g. the government. the composition of the governing board may be a problem ; the appointment of members of parliament to the governing board runs counter to traditions in central europe. 4. debt conversion and issues the countries that join the euro area may - and it is also envisaged that they will issue treasury paper denominated in euro. a member state wishing to convert its stock of debt into euro will be allowed to initiate the appropriate measures. a member state may also take steps whereby private issuers and marketplaces ( e. g. the stockholm