Efforts are also underway to improve the incentives created by compensation systems in financial firms. Fourth, supervisors have agreed to cooperate more closely in overseeing internationally active banks, through such vehicles as supervisory colleges.
First, in the remainder of 1999 and in 2000, macroeconomic policy has to remain firmly focused on keeping the EMU process on track and on securing the conditions that will make for a smooth transition and positive performance upon entry. From this point of view, the main challenge is that of sustaining price stability.