. it is likely that employers will be forced to make better use of their labour, recruit from abroad and support people to be mobile so that they can find the right tasks in life. employees will have to realise that if too many choose not to work, the welfare system will collapse. people that no longer feel satisfied with their work must think of alternative ways of supporting themselves. the welfare model must be designed to encourage people to work. great demands will be placed on society to think in a longer - term strategic manner so that changes can be implemented in time. competition in europe for the young, and especially the well - educated, will be fierce. more people will have to want to stay in or move to our countries. immigrants must be integrated quickly and successfully. next year ten accession countries will join the eu and become a part of the free market. the enlargement of the eu and the establishment of a common labour market around the baltic could perhaps increase the potential for an influx of foreign labour to the nordic countries. but poorer countries further away are likely to offer greater potential - and pose a bigger challenge. so it is not the nordic central banks that possess the instruments for or solutions to these problems. but if other policy areas are effective, it will help us to fulfil our objectives, i. e. to ensure price stability and thereby also favourable economic growth. it will require great leadership, a lot of cooperation and a high degree of openness in many areas in society. in particular, i believe that you, as teachers and participants in teachers'trade unions, have a vital role to play in this exciting process. thank you.

rained down on us in recent decades - mexico 1994, asia 1997 - 1998, russia and ltcm 1998 and argentina 2001. to mention but a few. many central banks have these issues on the agenda as often as monetary policy issues. as i mentioned earlier, they also play an increasingly important role in many of the international contexts we participate in. if i am to mention a couple of examples, these would be the bank for international settlements, which now devotes a much larger part of its analysis capacity to stability issues, and where we are members of a couple of groups entirely focussed on stability. the most well - known work is that being done on the new capital adequacy rules - basel ii. another example is the work the riksbank is heading in surveying central banks ’ work on oversight of the financial infrastructure. the riksbank is also heading the work on reviewing the principles for how public authorities should work with regard to banking supervision. within the european system of central banks we are taking part in the work on producing a european stability report. the riksbank is also heading the working group that analyses issues regarding cross - border banks with a special emphasis on crisis management. this group reports to both frankfurt and brussels. the fact that our analysis work has developed since we published our first report in 1997 does not mean that we can rest on our laurels. we have taken outside assistance in our endeavour to focus and develop our analysis work. a few weeks ago, we presented the assessment of our work on the financial stability report made by an american researcher, a manager at imf and a manager from a swedish commercial bank over the year. happily, the three authors considered that we essentially devoted ourselves to the right issues and used the right approaches. however, they also presented some interesting suggestions for improvements. several of their recommendations concerned how we motivate and explain our role in the stability work. they thought we should be clearer when describing our objectives, and also with regard to the boundary between our work and that of finansinspektionen ( the swedish financial supervisory authority ) as well as to why we write a report twice a year. most of what i have tried to describe now, in other words. these are good suggestions that we are taking into account in the report to be published in two weeks ’ time. the authors had other suggestions that i think are good, but probably require more time for discussion within the riksbank and for possible implementation. the possibility