significant structural differences from the current eu member states. one of these differences is that the accession candidates are in a process of catching - up economically. they generally have inflation rates which are higher than those in the more mature and more slowly growing eu member states. this is an outcome, first, of differences in productivity gains across countries and sectors - known as the balassa - samuelson effect - and, second, of shifts in demand. the resulting real appreciation does not pose an obstacle to eu enlargement in terms of progress in the liberalisation of foreign trade and its ensuing welfare gains for the eu as a whole. nevertheless, if the eu accession candidates participate in monetary union before the existing structural disparities are eliminated, the single monetary policy in the euro area will not meet the needs of all the member states. a hasty enlargement of emu would therefore harbour stability risks for the euro area and might generate tensions among the participating countries. accession to the eu, however, does not imply immediate full membership of emu. instead, the eu accession countries will participate initially as “ member states with a derogation ” in the third stage of economic and monetary union. the precondition for full emu membership is that the accession countries achieve a high degree of sustainable economic convergence. the convergence criteria laid down in the maastricht treaty are the yardstick for this. these criteria set unambiguously verifiable requirements in terms of price stability, long - term interest rate levels, the government fiscal position, and participation in the exchange - rate mechanism of the european monetary system, erm ii. in addition, pursuant to article 121 of the eu treaty, the examination of the sustainability of achieved convergence “ should also take account of... the results of the integration of markets, the situation and development of the balances of payment on current account and... the development of unit labour costs and other price indices ”. the convergence criteria are designed to guard against inflationary tendencies within the monetary union and to prevent tensions arising from structural divergences in inflation. the task of stabilisation does make stringent demands on the monetary policy of the accession countries, but price stability may be regarded as a sine qua non of sustainable growth. for that reason, the accession countries not least in their own interests - should not enter emu until the process of catching up economically has already made significant headway and the adjustment function of the exchange rate can be more

up with a serious estimate of how much the transition to a low - carbon economy will cost and who will have to bear the burden of the adjustment at the end of the day. • an orderly and early transition is sure to be less costly than a wavering policy, however. • a clear framework will help us to better deal with uncertainties, enabling long - term planning and investment. and let me stress another point : the financial sector of course has a key part to play in the financing of this structural change. that ’ s why central banks are integrating climate risk into their analyses. • climate risk is not a separate risk category, but influences known risks such as credit and market risk. • financial stability relies on the financial sector being resilient to the uncertainties and risks stemming from climate change and climate policy. this is true here, as it is with other risks and vulnerabilities facing the financial system. shaping the transition to a low - emission economy and creating the necessary framework for this is a task for policymakers. they possess the required instruments, and they have the democratic authority needed to do this. digital transformation digital technologies are already pervasive in our everyday lives. they are transforming products, production processes, business models and markets. • old certainties and habits are being called into question. • but there are also unimagined possibilities to usefully tap the opportunities presented by the digital transformation. government can set a good example here. public administrations can lower costs by offering digital services. • germany ’ s national regulatory control council has proposed the “ once only ” principle, for example. data on individuals and businesses would be requested once only. with their consent, authorities can reuse those data and share them among themselves. • in the eurosystem, too, we are working very specifically on projects aiming to make the task of reporting by institutions for our statistical and supervisory surveys simpler and more [UNK]. [ 6 ] in doing so, it is very important to us that we liaise closely with the financial sector. nonetheless, there is a great deal of catching up to do in public administration, as shown by a european commission report : • out of the 28 eu countries, germany is ranked only 24th for digital public services and has even dropped lower recently. • the report describes improving online interaction between public authorities and members of the public as “ the greatest digital challenge ” for germany. • it is especially important to make progress here, because public administration can act as