taken in response to the crisis. markets expect decisions that have an immediate effect, decisions that are bold, front - loaded and far - reaching. they become exasperated by the fact that political agreements can take months to become operational, as was the case with the european stability funds or mechanisms. however, the decisions must be explained, the approval procedures followed and sometimes political compromises have to be negotiated, and all within a system of 17 sovereign democracies. thus, once the decisions have already been implemented, we find that expectations have changed and that these decisions are now taken for granted. this complex relationship between governments and markets is another reason why it is essential that we achieve a closer and deeper economic and financial union in order to ensure a stable future for the euro. the logic of the original design of emu, a single or federal monetary policy, coexisting with decentralised economic policies, was linked to the principles of subsidiarity and democratic accountability. this was consistent with the prevailing setting for two decades. but these same principles today involve more europe. because the principle of subsidiarity assigns to the european authority tasks that cannot be effectively carried out at the national level. can anyone argue, after the intense experience of the crisis, that a european level of government is not the most effective way to conduct directly, or at least coordinate, certain economic and financial policies? democratic accountability is a principle under which citizens must be able to demand accountability from politicians about the decisions taken. but if we need a stronger european authority, the principle requires a profound improvement of democracy at the european level. and any thoughts on what this entails should start by recognising that membership of the euro leads to a significant degree of political union. we have found that in order avoid crises all member countries should take responsibility for monitoring and for exercising peer pressure in relation to the economic policies of the rest. and we have also seen that in order to correct the effects of the crisis in the euro area we need decisions to be taken collectively and to consider the euro area as a whole rather than to be dominated by specific national interests. the need for institutionalized collective decision - making procedures is what defines a political union. this need has been felt de facto by the members of the euro area since the beginning of the crisis. its de jure recognition has been somewhat slower but decisive. thus, the treaty of stability, coordination and governance will enter into force on 1 january 2013 if 12 member states rat

prasarn trairatvorakul : growth, sustainability and inclusiveness – thailand ’ s key success factors dinner talk by dr prasarn trairatvorakul, governor of the bank of thailand, at the japanese chamber of commerce ( jcc ), bangkok, 23 march 2011. * * * ladies and gentlemen, let me begin by extending my deepest condolence to the japanese business community in thailand on the immense losses caused by the unprecedented earthquake and tsunami in japan. despite the tragic incidents, i am confident that the strength and determination of japanese people, together with supports from all around the world, will enable japan to recover swiftly. for today, i would like to thank the japanese chamber of commerce for inviting me to share with the distinguished audience my assessment of the thai economy. i also look forward to hearing your views and concerns regarding the economic prospects. needless to say that japan and thailand have a long history of close economic relationship, with japan being the top foreign investor in thailand. as such, thailand has become a production hub for several japanese industries, including vehicles, electronics and electrical appliances. i therefore hope that our discussion today will help align understanding and further strengthen the partnership between our two economies. for my presentation this evening, i would like to offer my assessment of the economy based on what i see as the three most important attributes that determine the economic progress for thailand – the “ key success factors ”, if you will. first is that growth must be sustainable. we don ’ t want three years of boom followed by three years of bust. second, the country ’ s potential growth rate should be high enough to continuously raise the people ’ s general standard of living. and, third, growth should maximize inclusiveness. by this i refer to maximizing the exposure of everyone to economic development, both in terms of participation in the development process and in the sharing of its benefits. this would lessen the problem of inequality, and foster social harmony. that said, i wish to underscore that, even though growth is the most visible factor, growth alone is not sufficient but sustainability and inclusiveness are also crucial to ensure long - term economic success. looking at economic strengths and weaknesses in the context of these three success factors should provide for a better understanding of the role of central bank and policymakers in advancing the economic development agenda for thailand. indeed, these success factors entail three corresponding fundamental responsibilities for policymakers. the first responsibility is to ensure continued macroeconomic stability