and supervisors have to work with more than 150 different options and national discretions in the single rulebook. these options and national discretions are often a legacy resulting from different market structures and legal environments. many of them have material effects on the level of prudence of the bis central bankers ’ speeches framework and on the comparability of capital ratios ; they also add an additional layer of complexity as well as a source of regulatory arbitrage, of risk to the financial sector and of competitive disadvantage for banks established in member states that have chosen the most virtuous standard. let me take one example related to the transitional arrangements in the definition of capital. the various phase - in arrangements of the crr capital definitions within the ssm account for an overall €126 billion gain compared to the “ fully - fledged ” definition. this amount is unequally shared across national banking systems as clearly shown in the comprehensive assessment report published last year. it is up to the ssm to use its power for exercising options and national discretion wisely. we aim to improve the comparability of capital ratios. in the medium to long run, this will permanently increase the resilience and service capacity of banks. it is up to the ssm to use its power for exercising options and national discretion wisely. we aim to improve the comparability of capital ratios and create transparency by providing reliable information to citizens and market participants. in the medium to long run, this will permanently increase the resilience and service capacity of banks. of course, harmonisation cannot be a goal in its own right. exactly the same is true for national specificities : if national specificities contribute to a more stable banking system, the ssm will be eager to preserve or even promote them. but if national characteristics are only the reflection of unquestioned traditions and regulatory capture, they should be eradicated. as with the srep decisions, we expect positive outcomes in terms of prudence, consistency and stability of the framework to outweigh by far the adjustment costs that each national banking system will face by converging to the high standards. let me conclude, as dinner is awaiting us. while banking is a complex business, and as such it cannot be naively regulated or supervised, there is of course always room for improvement. therefore, you will be pleased to hear that simplicity and comparability of prudential standards have become a top priority for the basel committee on banking supervision, and that regulators

##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