And this brings us to the last basic ingredient for a stable monetary union: competitive economies which are resilient enough to withstand or recover from adverse shocks. Unlike countries with their own currency, euro area member states cannot resort to the instruments of monetary policy and exchange rate flexibility when they face country-specific shocks.
Also, to minimize the impact of the new capital rules on credit availability while the global economy is still recovering, we and our international colleagues have agreed to allow long transition periods for the implementation of the new standards.