Mr McCreevy opened by stating:

"International financial markets don't get very good headlines at the moment. But let us consider the facts."

"First, it may seem obvious, but let us not forget that globalisation is far from being confined to capital markets. Trade flows are freer than ever and growing much faster than global GDP. Citizens are more mobile than ever. People seek new experiences outside their home countries. In some ways, the financial services industry could be said to be less internationalized – behind the curve."

"Secondly, what we are experiencing with today's volatile markets can be partly explained by the beginning of financial globalisation. Some investors are just beginning to get used to invest their assets on a global basis. And the learning process is sometimes painful, especially for the most imprudent ones. But I am confident that all stakeholders will learn from the current turmoil. Out of crises, lie opportunities."

McCreevy went on to add:

"Let me now say a few words on how we are dealing with the internationalisation of financial services markets. We are working hard on it. With the EU having the biggest capital markets in the world, we want to shape it, not be shaped."

"First we had to put our house into order and design an open architecture for financial services - sufficiently harmonized - prudentially robust - consumer sound."

"Second, we have to ensure that rules are implemented efficiently and correctly within the EU. Enhanced convergence of supervisory practices is a priority: our rules require consistent implementation and enforcement. Even inside the EU, internationally active groups are subject to different sets of rules and multiple reporting formats. We must strengthen the existing EU supervisory framework."

"Thirdly, we have an active international policy. Since 2003, we have started regulatory dialogues on financial services. First with the US of course. But also with Japan, China, Russia and India."

Speaking positively with regard to future prospects, Mr McCreevy explained that:

"We are pragmatic, not negotiating lengthy treaties. Not bureaucratic wasting time on useless declarations of content and messy, complex procedures. We inform our European Parliament colleagues of what we are doing. We report regularly to all Member States. We want to solve problems. We try to involve the industry before and after our meetings, or even have joint meeting with them such as the Financial Services Round Table with China."

"One of the objectives of these dialogues is to promote our regulatory approach. We want to show the rest of world that the way we regulate in Europe is conducive to a dynamic, healthy and sound financial services sector."

"The other objective of our dialogues is to strive for equal market access," he added.

Concluding, McCreevy explained that:

"With a clear mandate of EU Finance Ministers, we are working with national regulators and supervisors, with the European Central Banks and all stakeholders on improvements to transparency, valuation standards of complex instruments, treatment of off-balance sheet risks, prudential rules and risk management practices."

"We also want to make progress on the functioning of markets, including credit rating agencies. This work will come to fruition throughout 2008. One thing that is absolutely clear to me is that we must not be afraid to question the adequacy of our existing measures and if necessary change them."

"I will support and implement any sensible and necessary adaptations to our regulatory framework. But let us reflect carefully – because rapid, careless, over hasty thrashing around responses to a swirling financial situation that has not yet fully played out, would not be the right approach."

"A strong Europe deserves good regulation. A strong Europe is an open one. Setting the pace, shaping the global financial markets of tomorrow."