that makes the eu fit for the future. second, the union has to integrate an unprecedented number of new member states. in my speech, i will concentrate on these two tasks and discuss to what extent - from the perspective of a central banker - the eu is on the right track. i will, however, start by identifying what i regard as the three key qualities of the european union. three key qualities of the european union the european union is a remarkable endeavour which is absolutely unique in human history. three reasons are, most of the time, proposed for explaining this collective will of the europeans to unite. first, the lessons drawn from the wars, particularly the last two world wars, which were, from a european standpoint, abominable civil wars. second, after world war ii the emergence of the soviet union empire creating a major economic, social and strategic threat for europe. and third, the challenge of global economic competition which called upon the setting up of a large single market to benefit from economies of scale of the same order of magnitude as those existing in the us single market. ensure peace amongst the europeans, protect europe against external threats, permit europe to cope efficiently with global competition had undoubtedly played a role in the bold european adventure of the last half century. but i am not sure that they are really telling the full story. in a way all these reasons are defensive, aiming at protecting europe against domestic and external dangers. i trust that at the heart of the european ideal of today there are also ideas that are profoundly enshrined in the european psyche : the idea of universality which is topical in the “ enlightenment ”, in der “ aufklarung ”, dans les “ lumieres ”. in this perspective, european union “ in motion ” would be also driven by this profound and rich european dedication to universality which is at the root of our civilisation and the ultimate goal of the europeans. i am referring to fertile ideas of ancient times. but as jean monnet said in his “ memoires ” : “ there is no such thing as premature ideas, there are only ripe times that one should wait for. ” whatever the complex set of reasons, almost fifty years ago european nation states took a bold step : they decided to work together. they initiated a european project which over time transformed this continent. i have always seen the european union as an impressive sailing ship with strong masts and many sails. this sailing ship and its crew have three very important qualities

not been fully learned, means there are still obstacles to cross - border banking. in europe, we have gone one step further in ensuring that banks in the euro area are supervised according to one approach – an essential part of the response to the crisis was to create a single supervisor for the euro area. the single rulebook forms the basis for this supervision. but this rulebook is not as single as supervisors would like. there are still some important areas in urgent need of harmonisation, not only to ensure a level playing field, but also to promote cross - border banking. 1 / 2 bis central bankers'speeches i will mention just a few : fit and proper rules are not harmonised at all. many crisis - related supervisory competences are not harmonised. there are still some options and national discretions open to member states, which means banks can be treated differently for reasons other than the underlying risks. we see that cross - border banking has recovered elsewhere but not in europe. european banks still lag behind in this respect. in part, this is also due to ring fencing, which limits banks ’ ability to freely move liquidity and capital within groups in europe. i understand that taking the first step in eliminating ring - fencing is daunting. host country supervisors fear being left to foot the bill of costly crises. for small economies, or large economies with a large number of foreign banks, this is a challenge. but it is a challenge we need to find a common solution to. and we need to find this solution before the next crisis hits. 2 / 2 bis central bankers'speeches