hampering further financial market integration are still in place. this is regrettable since the degree of financial market integration in europe is still clearly below the level efficiency considerations would suggest. the national economic policies of the eu member states are a big obstacle to further integration ; in other words, a great number of regulatory, tax and legal barriers continue to impede stronger financial market integration. but the current regulatory and supervisory framework still strongly relies on national responsibilities. the brouwer report found that there is a need to enhance arrangements for cross - border and crosssectional co - operation, to improve the alignment of supervisory practices and to reinforce the collaboration between supervisory and central banking functions. the eu ’ s regulatory roadmap to integration is the financial services action plan. it contains more than 40 legislative and non - legislative measures. the deadline agreed by the european council for implementing the entire plan is 2005, with an earlier deadline of 2003 for the securities and risk capital markets. considerable progress has been made in recent attempts to implement the lamfalussy recommendations in the field of security market regulation. consistent and efficient implementation of regulatory rules has been promoted by new institutional arrangements delegating rule - making powers to a committee or regulators whereas implementation at the national level is undertaken through a committee of supervisors. these two examples illustrate that initiatives are under way and debate is ongoing. however, not all of the recommendations of the brouwer report have been implemented and many other issues still need further investigation and debate. but developments show that we are heading in the right direction. the increasing integration of the european financial markets is only one further example that economic policy has become a subject of common interest in the european union. it also requires putting financial stability in an eu - wide perspective alongside the still important national point of view. accordingly, enhanced cooperation in the field of financial supervision, both nationally and between emu member states, can minimize the risks involved in deepening of financial market integration so that its indisputable advantages can take effect. at the national level we have been observing various proposals to reorganize and restructure financial markets supervision. in austria, the legal foundations as well as the practice of supervision have been evolving rapidly to respond to developments in the financial sector, to implement the eu financial sector directives, and to introduce ongoing improvements in international best practice. the most visible change in supervision and regulation has been the establishment of a single financial supervisory agency. since april 1st, 2002, the financial market authority

klaus liebscher : the euro - an anchor of stability in the international financial architecture speech by dr klaus liebscher, governor of the austrian national bank, at the international financial and economic forum, vienna, 14 november 2002. * * * it is a pleasure for me to be with you today and to address this highly distinguished audience on the euro and its role as an anchor of stability in the international financial architecture. since march 1st of this year, euro banknotes and coins have been the sole legal tender in as many as 12 out of the 15 member states of the european union, i. e. for as many as 300 million people. the completion of monetary integration in those 12 countries, as mapped out in the maastricht treaty, truly represents a culminating point in the process of european integration. with the use of euro cash, the single european currency has finally become a tangible reality for the citizens of the euro area - part and parcel of their everyday lives. it is gratifying to note that this historic cash changeover was completed most successfully with the broad - and often enthusiastic - support of the european citizens, including the people of austria, of course. with the introduction of the euro, the economic weight of this single market has risen to a level matching that of the usa. thus, the single currency has gained an important international dimension. the number of principal actors in the international financial system has now been reduced to three the usa, europe and japan. at present, europe is still trying to find its own, distinguished voice in international financial matters. but it is a fact even now that the introduction of the euro has had a stabilizing influence in the international financial system, as was successfully demonstrated in the wake of september 11, 2001. a number of indicators point to the growing international role of the euro : the euro segment of the global money market has risen to about 25 %. in the bond market, too, the euro plays a crucial role in fostering a deeper and more liquid market. the introduction of the euro paved the way for issuers to access a broader base of investors. investors too have gained access to a wider spectrum of investment opportunities. the euro ’ s share in net issuance currently amounts to 39 %. regarding its use as an official reserve currency, the euro has already attained the same weight as the predecessor currencies. within the euro area, monetary union has kept member countries from being exposed to harmful intraeuropean exchange rate tensions