third, regulatory uncertainty about the suite of capital and bail - in requirements – the supervisory review and examination process ( srep ), the minimum requirements for own funds and eligible liabilities ( mrel ), the total loss absorption capacity ( tlac ), and eba guidance on the minimum distributable amount ( mda ). uncertainty as to the actual effects that can be expected from the newly introduced brrd instruments seems to have played a role. • fourth, negative feedback loops between equity and debt markets, amplified by low secondary market liquidity. b. the eu response the responses of the european union to the weaknesses to the financial stability landscape that emerged have been effective, despite the initial lack of crisis mechanisms and the unfavorable and challenging environment – an environment in which fires were often being simultaneously fought on a number of fronts. initially, the response came in the form of monetary policy and a significant easing of the monetary policy stance. indeed, in october 2008, six major central banks, including the ecb, executed a coordinated and simultaneous cut in interest rates. additionally, at that time the euro - area countries set out an action plan of coordinated measures to restore confidence and improve financing conditions in the economy. these measures included the granting of government guarantees on bank debt issuance and the recapitalization of banks. with the eruption of the euro area financial crisis in 2010, and during subsequent periods when the monetary transmission mechanism was dysfunctional, the ecb increasingly implemented nonstandard monetary tools. additionally, to provide financial assistance to countries under stress, in june 2010 europe created the efsf, which was replaced by the esm in october 2012. perhaps the greatest challenge – and surprise – posed by the euro - area crisis was in the area of financial integration and banking. at the inception of the euro, it was widely - expected that the single currency would spur integration across previously - fragmented european financial markets. economists believed that this integration would be stabilizing : portfolio diversification and access to credit markets were expected to encourage risk - sharing while making national demand less dependent on national income – that is, portfolio diversification was expected to encourage consumption smoothing. and for the euro ’ s first ten years, that scenario unfolded very much as expected. then came a major surprise. the euro - area crisis revealed that countries within a monetary union can become subject to balance - of - payments crises – a possibility that had been almost completely overlooked by the architects of the euro

battle of salamis against the persians led to an expansion of the democratic institutions already introduced by cleisthenes. in democratic athens, all citizens enjoyed equality before the law, as well as equality of vote and equal opportunity to assume political office. the population doubled during the years of pericles, with thousands of immigrants contributing to the demographic growth of athens. ancient greeks conducted free trade with almost every part of the then known world, from the black sea to sicily, right up to the pillars of hercules, in today's gibraltar, founding colonies along the way. this commercial activity allowed, at the same time, invaluable cultural exchanges. the athenians managed available capital according to demand and supply, even initiating large - scale public works when unemployment was high. they turned economic prosperity into a warm place for art, science and culture to bloom. on the antipode, ancient greece can also teach us lessons to be avoided : in particular, how the lack of unity, or division and rivalry, which was the case between ancient citystates, can bring about a devastating conflict such as the peloponnesian war, which crippled greek military strength, bringing the most culturally advanced greek city - state, athens, into decline. luckily, there stand monuments, like the acropolis you see outside, that remind us of all these and of some core developments in the history of democracy and human creativity, which first emerged at the time of pericles but remain valid and pertinent to this day. it is a miracle that we are able to behold such iconic monuments and be reminded of the values they represent, which are at the core of our contemporary european identity and shape what it means to be a european citizen today. 3 / 4 bis - central bankers'speeches speaking of what it means to be a european citizen today, i would like to say farewell to my dear colleague ignazio visco, since this is his last governing council meeting after twelve years at the helm of banca d'italia. with ignazio, we have travelled together a long journey in the last several years. during this journey, full of storms but also some sunny periods, we have appreciated his integrity, intellectual honesty, wisdom, judgement, common sense, diligence and positive attitude. he has remained a true european citizen, faithful to the euro, supporting it in its most difficult times. a central banker who believes that price stability, financial stability and full employment can coexist if the