of inflation performance, low interest rates, employment creation, financial - market integration, and trade expansion demonstrate conclusively that the original objectives of the singlecurrency area are being fulfilled. furthermore, the euro has eliminated the potential risk of exchange - rate crises involving national currencies, to which many of our economies were previously exposed on a daily basis in a world characterized by free capital flows. moreover, the euro is now established as the world ’ s second most important currency, the significance of which is not lost upon a central banker. in effect, small countries, such as greece, have traded in the vulnerability associated with the free movement of capital for the greater security and credibility provided by a major international currency and its central bank. at another, no - less - important, level, the euro is a symbol of shared values and a common objective – the objective of bringing our citizens closer together in an environment in which they can prosper. i need to add, however, that the benefits of a single currency and a credible central bank do not come automatically. they depend to an important extent on the economic policies pursued by the euro area countries themselves. from a national perspective, therefore, the challenge is to maximize the benefits of participation in a monetary union by making further progress on the path of reform. for greece, it is particularly important to bring down the relatively high inflation rate in order to improve its competitive position. to achieve this objective, it is particularly important to continue on a sustainable and credible path to fiscal consolidation and to improve fiscal performance by reducing the country ’ s high government debt ratio. in particular, public finances should have sufficient room for manoeuvre in order to better cope with expected substantial increase in age - related expenditures. it will also be important, in both the public and private sectors, to attain moderate labor cost developments that take into account productivity growth, labor market conditions, and developments in competitor countries. attention must also focus on overcoming the structural constraints on economic growth and job creation, notably by fostering labor force participation. in this regard, the strengthening of competition in product markets, which will help keep profit margins at levels consistent with price stability, and improvements in the functioning of labor markets, are key elements in raising potential growth. for fifty years, the eu and its predecessor organizations have brought peace and stability to the member states. the single market and emu have built on that achievement by creating an edifice on which european economies can grow. by continuing to work

decision - making structure has not yet reached its full potential. on the one hand, there is a some concern about the potential proliferation of work among the various committees and working groups and the consequent risk of confusion and wasted resources. on the other hand, the process has started to yield significant benefits, especially in the field of supervisory convergence, which should overcompensate for few negative aspects. the committee of european banking supervisors ( cebs ) the cebs, as part of the lamfalussy framework, is the institutional committee that brings together all the banking supervisors of the eu countries and the central banks, including the ecb, as observers. the cebs has three main tasks : • to provide advice to the commission ; • to ensure the consistent implementation of community legislation in the banking sector and the convergence of supervisory practices ; and • to promote supervisory cooperation and exchanges of information. the cebs has an advisory role within the eu legislative procedure. the cebs ’ s other focus is to promote a consistent approach to banking supervision through increased convergence of standards and practices and enhanced cooperation and information sharing. the ultimate goal is to build a common supervisory culture and a practical operational network of banking supervisors within the established eu legal framework. this is of particular importance for the efficient supervision of crossborder banking groups, as the appropriate dissemination of information relating to risks and the elimination ( if possible ) of work duplication are expected to reduce the administrative burden and costs for the supervised institutions, while reducing the strain on supervisory resources. this does not mean that there are no benefits for smaller institutions, with a predominantly domestic or even local focus, as convergence will imply the establishment of a level playing field across the eu. next steps changes in the regulatory framework and the organisational structure of the decision - making process are necessary but not sufficient conditions for the realisation of the eu financial market's strong growth potential. this can be more easily achieved if financial integration is accelerated. this belief is the driving force behind the new eu financial services strategy for the next 5 years, which is currently under discussion among the eu institutions, while, at the same time, market participants are being consulted. up to now, the elements that seem to be part of this strategy and are closely related to the banking sector are the completion of certain ongoing projects ( i. e. mortgage credit, consumer credit, the new legal framework for payments, etc. ) and the undertaking of new legislative initiatives ( i. e. investment funds