I will then focus on two highly topical policy issues, namely the current fiscal policy challenges in the euro area and the planned reform of financial regulation and supervision in the EU and globally. Before doing so, I should like to highlight an important event in 2009: the entry into force of the Lisbon Treaty on 1 December 2009.
The banks in our region are characterized by relatively low capitalization. This may force some banks to reduce credit volumes to comply with the new regulations. Monetary union contributes to financial stability During the financial crisis, the euro has kept and improved its position as a global currency (ECB 2010).