to reconsider their approach to risk – to look beyond their own direct operational exposures and their relationship to directly connected partners. a holistic and systemic global – or at least european – approach is needed, to the widening of risk assessment and coordination with other partners along the value chain, so that risk and crisis management procedures can be optimised. fourthly, in a rapidly changing global financial market, innovative products are developed. these new products may have an impact on the safety and efficiency of the post trading market and on the stability of financial markets, if their volumes become significant. for instance, total global otc derivative contracts have doubled within the last two years to approximately eur 10 trillion in ( gross ) market values ( usd 14 trillion – more than the annual gdp of the euro area 1 and similar to the total outstanding amount of debt securities issued by euro area residents in euro. the credit default swaps market has grown more than eight times in ( gross ) market value during the last two years. i suggest that monitoring and risk management measures needs to be intensified, to closely monitor the dynamics of the derivative markets and to strengthening the financial infrastructures by improving arrangements for clearing and settlement of otc derivatives in order to reduce systematic risks. i am confident that we can find the right balance, so that europe co - operates to harmonise, monitor and compete to deliver the economic benefits of the single financial market. thank you very much. euro area gdp eur 8. 9 trillion.

, has been assigned to an independent central bank with a clear primary objective of maintaining price stability. in addition to the ecb, the escb is also mentioned in the first part of the constitution, thus acknowledging the federal nature of the monetary authority of the european union and its sui generis character. finally, the more specific provisions concerning monetary policy in the current treaty as well as the statute of the ecb and the escb will remain unchanged and form part of the constitutional texts of the union. by contrast, budgetary and other economic policies will remain under national competence in the future constitution, in recognition of the fact that the vast majority of “ public goods ”, such as defence, for which revenues are raised and subsequently dispensed, are still provided at the national level. that said, the draft constitution also prescribes a close co - ordination of economic policies within the union. i very much welcome the fact that the fundamental features of the current set - up of emu have been preserved. after all, the stability of the institutional architecture is a crucial element of the credibility of the single monetary policy and the public ’ s confidence in our currency. concluding remarks clearly it is now up to the governments of the member states to move forward in the forthcoming intergovernmental conference and give the final form to the text prepared by the convention. if i, as a central banker, am allowed to present my assessment, i would argue that the convention has done a very good job of incorporating the substance of the emu chapter into the new constitution, while also introducing clarifications, additions and updates in the current texts where necessary and appropriate. what i do miss is that the convention has not taken over our suggestion to incorporate somewhere in the text the notion of eurosystem, which stands for the core concept of our central banking system, i. e. the ecb and the national central banks of the member states that have adopted the euro. the eurosystem is not mentioned in the treaty as it stands, nor in the draft - constitution. conclusion : we still have some work to do....!!! thank you for your attention.