policy, with potential second round effects on financial stability. if central banks in the short run shift their focus from the primary objective to supporting economic growth at any cost, it would indirectly create premises for long rung economic imbalances. the current polices pursued by both monetary and fiscal authorities should not be considered as a new normality. while the global economy is adjusting toward a new equilibrium, solid macro - prudential long run policies should replace current stimulating efforts. therefore the challenge for our economies in the long run is to address current problems and the inherited ones based on a new model of growth, based on : ( i ) higher savings and investments, aiming toward a contained consumption matched by domestic production ; ( ii ) persistent fdi inflows oriented toward tradable sectors ; ( iii ) regional cooperation. let me briefly share with you some of my thoughts on the importance of this last remark, namely regional cooperation. following arguments illustrate the benefits of cooperation, at several levels : • from a development point of view, increased cooperation and integration on a regional level creates a greater scope for economies of scale. this would increase incentives for local and foreign investors to undertake big investment project that would not be profitable otherwise. a related advantage would be increased specialization of our economies, leading to a higher economic performance. • on a policy level, coordinated macroeconomic policies, legal and prudential frameworks, would tend to improve the allocation of resources and to prevent beggar - thy - neighbor policies. this race to the bottom type of philosophy would not benefit the region as a whole. • from a strategic point of view, our region is in competition with several emerging regions on a global scale. it ’ s not sufficient any more to be the best guy in the village ; especially when there are an increasing number of villages on a global scale, with an ever increasing number of clever guys. • from a convergence point of view, the sharing of experiences would avoid costly errors, while coordinated policies and steps would make a stronger case for a faster eu integration. we should demonstrate that the region is fit to enter the club, by firstly adopting the rules of the club among ourselves. in a more technical and concrete approach, the efforts of the public authorities in our region to achieve a real and meaningful cooperation should consider the followings : first, the mentality of the societies in our region should change. it is noted that this region has a history full of conflicts and many other disputes. it is now up

to the young generations and to the people with an open - minded approach in our region, to find solutions and to promote behaviors that will build our future path toward europe. second, the commitment to full integration with the european union, should serve as a solid platform for cooperation, and as an anchor for pursuing sound policies and coordinated structural reforms. third, a very important precondition will be the strengthening of countries domestic anchors, specifically in the form of medium - term fiscal rules, fiscal councils, or embedding fiscal constraints in countries ’ constitutions. fourth, the legal basis that supports such international cooperation should be fully in place. it is important that such cooperation be guided from a set of consolidated principles with regional relevance. fifth, there is urgent need for policies that would encourage stronger inward fdi and other non - bank flows. the region ’ s growth model might need to be more self - reliant, emphasizing domestic savings, better mobilization of labor resources, and a much greater role for the traded good sector as an engine of growth. dear participants, let me conclude by pointing out that our region offers an interesting combination of countries, languages, culture and geographical composition. analyzed individually, it is difficult to think that our economies generate substantial incentives for foreign investors, particularly for strategic and technologically advanced investors, able to use the advantages provided by the economies of scale. moreover, the cost associating different strategic projects at a national level would be higher for our still lagging economies. i do believe that there is plenty of room to establish a joint regional market and our duty is to make utmost use of it. there are still a few gaps in the region with respect to infrastructure, energy, tourism, financial architecture, mining and agriculture. out task is to jointly identify missed opportunities, to jointly incorporate those into realistic business plans and to jointly present these regional projects in a contemporaneous way to private investors and supranational agencies, to benefit their political, financial and technological support and finally ensure a stable growth model. on a national level, there is still the need for deep structural reforms and all efforts should be made for them to operate in a concerted way across the see region. i believe that the european union structures should closely orientate, monitor and assess this process. this is the only way to steadily convert our countries into highly productive economies, attractive to foreign investors against the backdrop of favourable labour cost. this all makes sense once we fully re - dimension our educational