to further integration. fortunately, the right initiatives are underway. it already started in 2001, with the regulation on cross border payments in euro. better known as the bolkestein regulation. this regulation paved the way for the single euro payments area. an ambitious initiative, where european citizens should by 2010 be able to make payments throughout the euro area from their bank account as easily and safely as in their own country today. by creating a pan - european infrastructure and identical payment tools, all payments in the euro area essentially become domestic payments. 15 years ago this goal was beyond imagination. now it appears within reach. concluding remarks to conclude, the euro has seen a number of successes : the introduction of a new currency for more than 310 million people, price stability, low interest rates and progress in the integration of the goods and financial markets. these achievements are remarkable, as they have been realised in a short period of time and in a unique political context. indeed, europe is the world ’ s laboratory : we created the first supranational entity based on a sense of solidarity rather than coercion. of course it is not all plain sailing. in the fields of public finances and the internal market work remains to be done to reap the full benefits of the euro. it is therefore important to remain ambitious in the near future. not ambitious to be, but ambitious to do. how monetary union will evolve in the future is hard to predict. but if the past 8 years offer a compass for the future, i am optimistic we find the right answers to our current challenges. g. tumpel - gugerell ( 2007 ), the competitiveness of european financial markets : an economic framework for effective policy making, speech at washington economic policy conference, 12 march 2007.

the banking system is stable despite challenges expected in implementing basel iii, especially over the longer term. however, we vigilantly monitor global developments and the possibility of contagion to our economy. bis central bankers ’ speeches it is important that, in extending the mandates of central banks, there should be a clear understanding of what central banks can and cannot do, and an appreciation of the possible conflicts between the different objectives. central banks, in normal times, function in an uncertain environment. in the prevailing difficult global conditions uncertainty is at an even higher level, and many of the actions taken have no precedence. it is therefore incumbent upon central banks to share information and together learn from our collective experiences. as the lines between the various mandates become increasingly blurred, there is a danger that the burden of expectations could be excessive, and ultimately undermine confidence and credibility in central banks themselves. these challenges are being considered by central banks and others, and require that all of us better understand the immediate challenges of the mutating, extremely severe global financial crisis. at the same time we need to appreciate that measures required to deal with the crisis may well have unintended consequences for central banks, their mandates, independence, capacity and role in society. thank you again for the opportunity to speak to you. bis central bankers ’ speeches