twenty years now since the single market was established. and while the single market has brought us enormous benefits and created new opportunities, we have to acknowledge that a truly integrated european market is still lacking in some important fields, including services and energy. legislation is missing and, more importantly, administrative obstacles and lacking enforcement leave the full potential of the single market unexploited. the european single market is the largest in the world by value. the commitment and actions put forward by the european commission in order to exploit the untapped potential of the single market are thus very much welcome and encouraging. ( iii ) the eu external dimension while it is crucial to complete and deepen the european single market, europe must not leave the growth potential from external trade unexploited. the current crisis is unfolding against a background of population ageing. this is a long - term trend that cannot be rapidly or easily inverted, and which puts significant underlying pressure on europe ’ s growth potential and public finances. in contrast, other areas of the world are catching up with the advanced economies and offer a handful of opportunities to european businesses. deepening europe ’ s economic ties with the most dynamic areas in the world in a context of strict reciprocity should thus be a clear priority in the european growth strategy. 5. concluding remarks let me conclude with a word of confidence in the future. europe has experienced difficult crisis before. these crises have been a catalyst for deepening and strengthening the european project. while i ’ ve tried not to downplay the seriousness of the situation and the magnitude of the challenges we face, i believe that a stronger and fitter european union will emerge from the current crisis. the crisis has shown the urgent need for enhanced international cooperation and coordination, better economic governance, strengthened market supervision and increased discipline and transparency. much progress has been made in this direction. however, neither of this will endure without sustainable and equitable economic growth and job creation. in other words, we need to ensure the eu is a positive - sum game and that the cross - country distribution of gains is well - balanced. we cannot miss this unique opportunity to introduce fundamental changes and deep - rooted structural reforms, to complete the single market and to strengthen europe ’ s international bis central bankers ’ speeches role. the eu would hardly survive a failure of the euro and this would not only be a european but rather a global problem with profound geopolitical consequences. we have a huge responsibility towards present and future generations.

lifted to the surface and processed to find an ounce of gold. the formation of company structures, and the establishment of a local stock exchange in the 1860s, facilitated the provision of finance for all this activity. now, of course, this was not without risk. moreover, one could hardly claim that the exchange was not given to occasional bouts of “ irrational exuberance ”. geoffrey blainey ’ s account of october 1871, with trading continuing on the streets into the early hours of the morning, with even the destitute seen “ pencilling [ their ] own share transactions ”, gives the flavour. 4 capital markets are prone to bouts of euphoria, which is why it is best if banks and other deposit - takers keep a polite distance from the riskier end of the spectrum, and avoid lending against the more speculative assets. nonetheless, for all their occasional dislocations, the development of equity and debt markets has been important in the advance of the modern economy. today, the bendigo stock exchange, like bendigo bank, continues, even if in slightly less colourful fashion, providing an equity market for small - and mediumsized firms. blainey, g. ( 1963 ), the rush that never ended : a history of australian mining, melbourne university press, melbourne, p. 75. in the period ahead, at the global level, it will obviously be critical to restore the proper functioning both of capital markets and of major international financial institutions. losses need to be recognised, capital structures repaired where necessary, risk management processes re thought and managerial incentives more carefully structured. that process is under way, though it may have some way to go yet. the main australian institutions are generally well placed, in my judgement, to prosper in this environment, if they continue to manage their businesses well. at the local and regional level, meanwhile, there is an ongoing role for the provision of financial services. bendigo bank ’ s community banking model, which seems to be a very successful one to date, is an innovative response to the demands of local communities for such services. the major banks tended to scale back their regional presence, in response to the cost pressures on them after the events of the early 1990s, and the changing economics of branch banking which became apparent as financial liberalisation proceeded. this withdrawal left an opportunity, but to take it, someone had to devise a business model that could cover costs at a price which the community could accept. the bendigo model seems