##ised economies from a longer - term perspective, shows that europe has scope to better develop its growth potential. 4 one of the principal factors behind the euro area ’ s disappointing performance in the past is the low trend growth in labour productivity. indeed, the growth in labour productivity in the euro area has significantly slowed down over the past 30 years. during the 1980s hourly labour productivity in the euro area grew on average by 2. 3 %, while in the 1990s, it declined significantly to 1. 8 % and further decreased to 1. 2 % between 1999 and 2007. in contrast, hourly labour productivity growth in the us accelerated from 1. 2 % to 1. 6 % and 2. 1 % over the same periods. 5 what lies behind these disappointing developments? the impressive rise in the overall employment rate in the euro area over the past decade, which partly reflects the progress made on structural reforms, wage moderation policy and immigration flows in some most euro area countries have benefited from significantly more favourable financing conditions than in the 1990s, which has supported private and public investment, as well as fiscal consolidation. for instance, in the euro area in the nine years following the introduction of the euro, real gross capital formation grew on average by 3. 0 % per year, compared with only 1. 7 % during the nine - year period preceding the introduction of the euro. exports and imports of goods and services within the euro area rose from about 31 % of gdp in 1998 to around 40 % of gdp in 2007. the completion of a single market for services will further facilitate trade in services. the rate of increase in extra - euro area exports and imports of goods and services even exceeded that in intra - euro area trade, rising from about 32 % of gdp in 1998 to almost 44 % of gdp in 2007. extra - euro area trade has, of course, also benefited from a period of strong external demand and increasing integration at the global level. since 1999, for instance, the annual growth rate for the euro area has averaged 2. 2 % per year compared with 2. 7 % in the united states. source ameco database. data on hours worked per worker for the euro area for 2007 are assumed to be constant. data on hours worked per worker for the us are estimated using the oecd data for 2006 and 2007. european countries, has undoubtedly constituted a source of growth. 6 at the same time, specific policies aimed at increasing employment, particularly in the unskilled segment of the labour

the financial stability forum, which has been set up by the g7, under the proposal of hans tietmeyer, to draw the lessons of the asian crisis, is in an ideal position to identify the areas where appropriate improvements could be introduced. i encourage very strongly the financial stability forum and all the committees that are actively working at a global level, including the basel committee, to draw all the lessons of the present turbulences and to examine the situation without any complacency. in my view no single area should be put aside from this review which should concentrate on the ways and means to foster financial stability, prevent propagation of disturbances and contagion, improve risk management at all levels, and diminish procyclicality, in particular, in the domains of accounting rules and accounting practices of rating agencies, of supervisory banking rules – the first duty being to implement globally basel ii which is largely superior to basel i – including harmonisation of liquidity rules and requirements, of supervisory insurance rules, of market supervisory authorities regulations, of regulated and non regulated private institutions ( whether highly leveraged institutions or so - called s. i. v. and conduits ), and of market practices. this does not mean necessarily dramatic changes of rules and overloading of new regulations. i am of the firm opinion that voluntary code of best practices, the set up of voluntary “ principles ” and the working out of voluntary benchmark best practices are most of the time preferable to the addition of new layers of rules and regulations. but we have, in any case, the duty to be effective in working out the lessons of the present market correction. this is no time for complacency in any respect. thank you very much for your attention.