I see three main reasons for EMU to boost growth and employment in Europe. Participating countries will have low inflation and well-managed public finances. The European Central Bank will be the most independent in the world. It will have price stability as its priority objective. Experience shows that this is the best institutional framework for credible policies and long-term stability.
Stability also depends on effective budgetary discipline.
That is why the Treaty sets down rules to prevent one member state from running up irresponsible levels of public borrowing which could undermine the market credibility of the euro. With this goal in mind, a series of additional procedures are contained in the so-called stability and growth pact. The framework for EMU should therefore guarantee the conditions of stability, which are required for a robust economic performance in Europe. With credible macro-economic policies, we will create the conditions for low interest rates. Investment will be stimulated.