It’s not sufficient any more to be the best guy in the village; especially when there are an increasing number of villages on a global scale, with an ever increasing number of clever guys. •  From a convergence point of view, the sharing of experiences would avoid costly errors, while coordinated policies and steps would make a stronger case for a faster EU integration. We should demonstrate that the region is fit to enter the club, by firstly adopting the rules of the club among ourselves. In a more technical and concrete approach, the efforts of the public authorities in our region to achieve a real and meaningful cooperation should consider the followings: First, the mentality of the societies in our region should change. It is noted that this region has a history full of conflicts and many other disputes. It is now up to the young generations and to the people with an open-minded approach in our region, to find solutions and to promote behaviors that will build our future path toward Europe. Second, the commitment to full integration with the European Union, should serve as a solid platform for cooperation, and as an anchor for pursuing sound policies and coordinated structural reforms. Third, a very important precondition will be the strengthening of countries domestic anchors, specifically in the form of medium-term fiscal rules, fiscal councils, or embedding fiscal constraints in countries’ constitutions. Fourth, the legal basis that supports such international cooperation should be fully in place.
Even though there are variations across regions, the trend in house prices is the same – from a more moderate rise at the beginning 2007 to a clear decline at the beginning of 2008. Norges Bank’s lending survey for the third quarter shows that banks are tightening credit standards for households. Banks announced further tightening ahead. Owing to growing turmoil and liquidity shortages in financial markets, banks have raised their requirements with regard to collateral and borrowers’ debt-servicing capacity. Growth in household credit has slowed in recent months. House price developments affect building starts, which have decreased in the past year. The decline is sharpest for residential building starts. In October, enterprises in Norges Bank’s regional network indicated a very low level of housing starts in the period ahead. Order reserves for commercial buildings and holiday homes are high, however. Commercial construction is largely financed by loans, and may therefore be affected by changes in interest rate and credit conditions. Enterprises in Norges Bank’s regional network report that commercial building starts have declined in recent months. Household saving has picked up. Household income accounts show that the savings ratio excluding share dividends has risen, but is still very low and negative. Household borrowing requirements have also decreased somewhat. (Household net lending has picked up slightly.) The financial market crisis has led to higher borrowing costs for banks and has kept bank lending rates at a higher level than developments in the key rate would imply.