% in 1995 to 43 % in 2006 ( goods and services exports - to - gdp ratio : 58 % in 2006 ), and foreign direct investment has increased from 5 % to 23 % of gdp in 2005. in addition, average ( cpi ) inflation fell from approximately 2. 7 % in the decade before eu membership to some 1. 7 % thereafter and, at 4. 8 % in 2006, the unemployment rate is one of the lowest in the eu, also due to a successful “ social partnership ”. the employment rate of 15 - 64 - year olds is one of the highest in europe. austria benefited not only from eu membership and the single market, but also from the fall of the iron curtain in 1989 and from the transition and integration process in central and eastern europe, including southeastern europe. fdi in the region and bilateral trade have intensified very markedly. bilateral trade with central and eastern europe has tripled since 1993 in real terms. austrian companies in general, and austrian banks in particular, were quick to identify market opportunities in central, eastern and southeastern europe and have established a considerable presence. with an average market share in banking sector assets of almost 25 %, austria ’ s banks are among market leaders in this region. 2 more than one - third of the profits of the six largest austrian banks already come from this region. as austrian banks central, eastern and southeastern europe, excluding cis countries. continue to move into the southeast and east, their exposure is broadly diversified, which is intended to contain risks. at the same time, the austrian authorities closely monitor potential challenges involved. stress tests indicate that the banks ’ exposure is manageable and potential contagion effects on austrian banks should be very limited. having mentioned some positive effects for austria, we must concede that big changes rarely only create winners. in balance, however, emu and the euro have undoubtedly shielded the austrian economy well from possible adverse effects of globalization. moreover, backsliding into protectionism would be like traveling back in time. from the narrow focus, let me again widen the perspective to the world economy. the increasing emergence of new players on the globalized stage has contributed to the very impressive recent expansion of the world economy. yet, this dynamic growth has also created economic challenges, such as surging commodity prices and significant current account imbalances. recently, global growth appears to have become somewhat more even - footed, as growth in japan and the euro area has been picking up. the economic upswing in the

euro area can be attributed at least in part to improved economic structures and is based on the stability - oriented framework of emu. the governing council of the ecb will continue to support this upswing by acting vigorously to maintain price stability. moreover, the international competitiveness of the euro area has to be improved. with structural reforms still ahead, the euro area economy seems vulnerable to an abrupt unwinding of global imbalances in the us and asia. today, there is large consensus in europe that lower growth in the eu is largely structural in nature. in order to improve its position in the global economy, we have to work on reducing growth differentials, in particular vis - a - vis the us. we should respond with policies designed to use opportunities of globalization, particularly to increase productivity and growth, while minimizing unavoidable adjustment costs. the right answer to globalization and international competition is therefore to continue and intensify the structural reform process. standstill would be detrimental. in this context, let me mention the moribund doha round, which has even cast doubt on the future of the world trade organization ( wto ). although calls for protectionist measures to counter the increasing competition from asian economies should be taken seriously, i stand on the side of free trade and believe that protectionist pressures need to be firmly resisted. there is no doubt that globalization has worked well for the people of europe. after nearly nine years of experience, economic and monetary union and the euro have proven to be europe ’ s most forceful strategic responses in a changing global economy. it is said that : “ change is inevitable ; growth is optional. ” in a globalized world, europe has chosen to grow.