As for the audit role, we will have to provide internal control assurances to the ECB on all the functions we will be carrying out on their behalf. All of this, of course, has important implications for essential support functions such as information technology and human resources. I need only mention the fact that euro area membership entails considerable electronic reporting obligations and the maintenance of several statistical databases. The Bank is gearing up to take on these new, more specialized functions, and I would like to note that it is only able to do so with confidence because it has a substantial core of qualified and dedicated professionals in all these areas. 6  BIS Review 16/2006
Direct financing via capital markets is growing in importance, even though banks are still the most important source of financing in the euro area. Such changes in the financial landscape make the allocation of funds more efficient and are hence most welcome. At the same time, however, they alter the transmission mechanism of monetary policy, and insofar as this alteration is difficult to measure, add uncertainty to monetary policy decisions. Apart from the financial environment, the real economy in the euro area is also currently subject to significant change. Monetary Union has enhanced competition between economic agents in the participating countries. Price transparency between the countries has increased. Both consumers and companies are becoming increasingly more aware of price differences and are reacting accordingly. Greater price differences will be harder to justify and maintain, even though differences in the tax systems and in product specifications will continue to exert an influence on price setting. Fiscal policy may be affected, both by increased competition between countries and by the general need to foster employment and growth in order to comply with the challenges of ageing populations. These realities have triggered tax cuts and the start of more fundamental benefit reforms. However, these efforts must be accompanied by a structural reduction in expenditure in order to support price stability, make further progress in fiscal consolidation and boost economic growth. Overall, the increase in competition, less rigidity and a more flexible structure of the economy should lead to an increase in the sustainable rate of economic growth.