In terms of the later adoption of the single currency, this relates particularly to the central bank acts, movement of capital, the banking system and the stability of the financial system. By virtue of their accession, the central banks of the new EU member states become part of the European System of Central Banks (ESCB).
The reforms we are introducing centre on our new risk based supervision framework – PRISM which stands for the Probability Risk and Impact SysteM. I will explain how the PRISM framework operates in due course but perhaps it is helpful to start by explaining why we have chosen to adopt a risk based supervision system.