A terrorist nuclear detonation in a western city would destroy all economic confidence.

The E.U. has moved to combat global terrorism by instituting common European arrest and evidence warrants and creating a joint situation center to pool and analyze intelligence.

The economy is not an abstraction. The economy consists of people, and it will only grow if people feel secure and are reasonably free.

Financial service providers act as the lubricating oil in the economy. They link consumers who want to invest their savings for a good return with companies who want to borrow on best terms for expansion.

Proliferation of nuclear weapons to terrorist organisations is far more dangerous than proliferation of nuclear weapons to states, even states like North Korea.

That's where my job comes in. Getting the E.U. and U.S. to agree.

But our system of regulation must keep up with this. If it fails to keep up, it will hold back economic expansion. We need financial market regulation that works at national and European level.