this complex phenomenon within the esaamlg region, is among topics to be discussed at length. given its threat to financial stability and financial inclusion, discussing on possible solutions to overcome this risk is critical, especially for those of us who are very dependent on the international payment system to effect trade. seychelles has not been spared, as some of our banks have experienced this phenomenon and one of them will be sharing its experience on the issue tomorrow. despite this reality, we have been proactive. in line with its mandate to ensure financial soundness and financial stability, the bank has been engaging in several initiatives, as part of efforts to mitigate the threat and impact on the economy. one of the initiatives was a roadshow conducted during the last quarter of 2017, when a team from the central bank and financial services authority visited several financial centres in europe and the united states - particularly in london, frankfurt, zurich, madrid, paris and new york. while the main aim was to better understand the de - risking issue, and inform the international community about efforts being undertaken to strengthen the effectiveness of the aml / cft regimes in the jurisdiction, the visits also provided the opportunity for us to better appreciate the concerns that correspondent banks and regulators have regarding the jurisdiction. as we uncovered the challenges, ranging from issues specific to the offshore sector, as well as jurisdictional issues, it became clearer that the country has to overcome several issues to reduce the risk of losing correspondent banking relationships. since then, we have embarked on an action plan to step up efforts to address a series of recommendations, some of which had already been identified. this includes the enhancement of our aml / cft legal framework, reforming the offshore sector, closer engagement with correspondent banks showing greater interest in dealing with the jurisdiction, and the need to embark on a comprehensive, co - ordinated and sustained communications campaign to restore the reputation of the jurisdiction. while we continue to highlight the issue of de - risking as a threat, we are conscious that we have to play our part to beef up our aml / cft regime, and ensure that we are in compliance, as non - compliance is not an option. it is for this very reason that seychelles sought the assistance of the world bank to conduct its first national risk assessment. the mutual evaluation came in timely such that all recommendations can be consolidated and acted upon. work is already underway as we endeavour to close the gaps that have been identified, with the aim of strengthening seychelles ’ reputation and

out differences in living conditions. germany has this in the form of horizontal financial equalisation among the federal states [ landerfinanzausgleich ], as well as transfer payments to the states of former east germany, which are financed by the solidarity surcharge [ solidaritatszuschlag ]. it may well be that one day the political will considers fiscal transfers between the member states of the euro area necessary and desirable. however, that would then require a change conclusions of the presidency, european council in copenhagen, http : / / www. consilium. europa. eu / uedocs / cms _ data / docs / pressdata / en / ec / 72921. pdf. see the opinion of advocate general cruz villalon on case c - 62 / 14, peter gauweiler, et al. and fraktion die linke im deutschen bundestag v deutscher bundestag ( request for a preliminary ruling from the bundesverfassungsgericht ( germany ) ) delivered on 14 january 2015, paragraph 38 ff. bis central bankers ’ speeches 21 – 22 june 1993, to the european treaties. there is no provision for a transfer union in the current treaty. and whether you like it or not, that applies to the front door as well as the back door. this is something which those who call for more ( financial ) solidarity must realise. more solidarity within europe in this sense would also require more european control. but we don ’ t yet have a “ euro area parliament ” with the democratic legitimation for this, or a supranational budget worthy of this name. at the moment i see correspondingly little willingness from national parliaments to relinquish their budgetary powers in order to centralise them at the european level. the flipside of this coin, however, is that member states, with their own national budgets, have disproportionately more individual responsibility. even without financial transfers, there must be reasons why it is more attractive for member states to be part of the monetary union than to stay outside it. in addition, they must be better off in the euro area than out. in concrete terms, membership of the euro should bring more stability and prosperity. in this respect, the monetary union has already taken considerable steps towards integration. but a common internal market and a single monetary policy alone is not enough to achieve this in the long run. with strict