a commitment for the euro area. in this way, denmark can play a part, at least indirectly, in the anti - inflationary orientation of the euro, even if it does not join emu at once. naturally enough, the setting - up of an “ ems ii ” will, at the same time, enhance the responsibility of the european central bank. a stable euro is an essential precondition for the operation of an intra - european exchange rate system. i am convinced that the european central bank will be fully aware of precisely that international responsibility for the euro as the anchor currency. there will also be other links between the danish central bank and the european central bank : - the governor of danmarks nationalbank will be a member of the enlarged governing council of the ecb. and the central banks of the countries with a derogation are also invited to participate in target, the planned large - value payment system for the euro. in saying that, i would ask you to understand why there has to be a minimum of divergence in the terms of participation in target. those terms have to take account of the differing commitments of the central banks inside and outside the euro area. ii in order to explain the relationship between economic convergence and emu, there is, in the first place, a fairly simple textbook answer. by definition, a monetary union abolishes, once and for all, the instrument of exchange rate adjustment between the participating economies. the countries taking part must be able to do without that instrument for ever - even if structural changes occur. that calls for the ability on the part of each participant to keep up with the others in terms of economic and anti - inflationary performance, or - if it does fall behind - the ability to remedy a worsening of its competitive position by its own domestic efforts. these general requirements of a single currency area apply to the euro to a quite special degree. there are three reasons for this : firstly, in the supranational euro area - in contrast to the usual national environment of a currency - there will be hardly any fiscal policy mechanisms that would be able to counterbalance regional disequilibria. there will not be a dominant central budget. at the community level, there will be no network comparable to an internal, national system of income redistribution. the public financial systems and social security will remain in the national domain. secondly, any regional disequilibria in the euro area would scarcely be mitigated by high

joachim wuermeling : what will pass, what will still be around, and what will come? the prospects for germany ’ s banking sector speech by prof joachim wuermeling, member of the executive board of the deutsche bundesbank, at the bundesbank symposium " banking supervision in dialogue ", frankfurt am main, 19 march 2019. * * * 1 look to the future ladies and gentlemen, i, too, would like to warmly welcome you all to this year ’ s bundesbank banking symposium. today is a premiere for me, since it is the first time that i have the honour of hosting this event. i would like to use this opportunity to tell you what i see, in my capacity as a banking supervisor, and what the bundesbank sees as the key challenges facing germany ’ s banking sector at the moment and in the medium term. although acute problems tend to keep us busy on a day - to - day basis, i mainly want to identify prospects with you here today. let me put the question like this : imagine we meet here again in five years ’ time – which of today ’ s challenges will still be on our agenda? looking more to the future makes particular sense in 2019, because what we are currently experiencing is a turning point. the focus over the past decade has primarily been on learning the regulatory and supervisory lessons from the financial crisis. now this ambitious set of reforms is largely drawing to a conclusion, in the shape of the european banking package and the implementation of the final piece of basel iii. it will admittedly take a few more years to put everything into practice, but there is not much more in the pipeline for the time being. that ’ s why, for me, 2019 is also a year for staking out new topics – or, to use business - speak, for “ agendasetting ”. and that is why i feel we now need to look more at issues which will shape the future – such as structural change in financial markets, digital transformation and the evolution of the economic and political setting for you and for us. i would therefore like to organise my introduction in three sections. first, what will pass? these are the topics which are still very important today, but will probably be a thing of the past in five years ’ time. second, what will still be around? these are the issues which we are still some way from overcoming. and third, what will come? these are the topics i expect to grow