Interest rates have undergone a significant long-term convergence. We have the best economic conditions for a generation. We look set for a period of sustained economic growth. 1,5 million jobs will be created both this year and next year. The EU balance of payments is healthy.
Inflation is down, and government debt is falling.
However, despite this optimistic background fundamental weaknesses persist in the European economy. Unemployment remains unacceptably high. Europe lags the US in taking up new technologies, notably the Internet. These new technologies will carry the lion's share of growth in the new knowledge based economy. Even if Europe has undisputed leadership in mobile telecommunication, we are not leading the race along the information highway.