very limited. let me conclude by getting back from austria ’ s focal point of interest, central and eastern europe, to new york ’ s focal point of interest : the world economy. the increasing globalization of the world economy, with new players emerging on the world stage, has contributed to the very impressive expansion of the world economy in the recent past. yet, this dynamic growth has also spurred economic challenges, such as strongly rising commodity prices and significant current account imbalances. recently, global growth appears to be somewhat more even - footed, as growth in japan and the euro area has been picking up. the economic upswing recorded in the euro area can be attributed, at least partly, to improved economic structures and is based on the stability - orientated framework of emu. the ecb and the eurosystem respectively, will continue to support economic growth in the euro area by vigorously pursuing price stability. following this approach also guarantees that the euro can contribute most effectively to international stability. central -, eastern - and southeastern europe, excluding cis - countries.

council ( i. e. the heads of state and government ) in june. in case of a positive decision, both countries would adopt the single currency by the beginning of 2008. even though the new eu member states of central and eastern europe account for only some 6 % of gdp within the eu, one cannot neglect their positive effects on the rest of the european union. central and eastern europe is the most dynamic region in the eu – both in terms of economic growth and in terms of reform speed. during their catching - up - process, the new member states will further gain in importance and may turn into a driving force of the european economy. as a result of the dismantling of trade barriers, trade links with the new eu member states have gradually intensified. the former eu - 15 countries are not only the most important trading partners for the new members states but also account for three quarters of their total fdi stock. this is particularly true for the banking sector, in which foreign - owned banks have gained an average market share of around 70 %. i expect the very positive dynamics in central and eastern europe to continue. for the three eu members czech republic, hungary and poland, and also for russia, the staff of our bank forecasts annual real gdp growth to range between 5 % in the czech republic, 6 % in poland and 6 ½ % in russia, while economic activity in hungary is expected to slow down to less than 3 % this year, as necessary austerity measures take effect. for 2008, our staff expects some growth acceleration for hungary, and some moderation in the other countries mentioned. in the long run, the leveling off of eu accession - related and catching - up effects may dampen growth, but the general growth prospects remain favorable. austrian companies in general, and austrian banks in particular, identified market opportunities in central and eastern europe at a relatively early stage and have established a considerable presence in the region by now. with an average market share in banking sector assets of almost 25 %, austria ’ s banks are market leaders in central and eastern europe. 4 more than one - third of the profits of the six largest austrian banks already come from this region. as austrian banks 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