unavoidable that the euro area will change. we have to move ahead with deeper integration. in a monetary union, the economic policies of each country are by definition “ a matter of common concern ”. it is right and legitimate that the euro area establishes much closer oversight of national decisions – for its own sake, and that of the eu as a whole. this means that, like it or not, the euro area has become the engine of european integration. there will be a europe of different speeds and the euro area will be the fastest. but this process is not a threat to the idea of the european union. as the fiscal compact and the ssm show, countries that are willing and able to fulfil the requirements are invited to join. of course, for every member state the timing and conditions have to be right – but personally, i would like to see this sooner rather than later. thank you for your attention. bis central bankers ’ speeches

effect. market compensation for risk has gradually returned to more normal levels. the freefall of the economy has been halted and turned around. the financial crisis has not precipitated the extreme spiral of falling prices, rising debt burdens and chain bankruptcies that some economists had feared. for what concerns monetary policy, conditions are now stable enough that we can start to withdraw some of the excess support that is now not needed to the same extent as it was in the past. 22 concluding remarks let me draw to a close. an english proverb, echoed in many other languages, warns that sometimes, “ you can ’ t see the wood for the trees ”. systemic risk is about seeing the wood, and not only the trees. macro - prudential supervision, supposed to detect systemic risk and propose remedial action, has been devised because in a highly integrated and complex financial system, micro - prudential supervision alone can no longer guarantee financial stability. the main challenge in systemic risk analysis is therefore to integrate all relevant perspectives, including those of economists, supervisors, regulators, accountants, securitisation experts, rating experts, risk managers and many others to take a holistic view on the system, its dynamics and its interlinkages. as we have seen, small things can make a big difference and seemingly self - contained initial events can lead to a system collapse. we therefore need a detailed understanding of each part of the financial system. at the same time, their complex interactions mean that we need to keep the big picture in sight, too. we must not allow the understandably narrow focus of detailed knowledge to hamper insight into the system as a whole. like researchers on the climate and the natural environment, we need to combine the micro and macro perspectives. the academic research community can make a significant contribution in supporting policymakers to meet these challenges. it can help to improve analytical frameworks for the early identification and assessment of systemic risks. and it can contribute to discussions on the further identification and optimal use of macro - prudential regulatory instruments. macro - prudential supervision is an important tool to contain systemic risks and thereby contribute to sustainable growth and prosperity. the proposed establishment of a european systemic risk board next year is a very important initiative in this regard. ensuring systemic stability will also alleviate undue pressures on monetary and fiscal policies to extend financial safety nets. the standard macroeconomic stabilisation policies can then focus more clearly i have drawn out the ecb ’ s strategy