single market as much as germany. were it not for an open europe and the creation of the single market, the robust economic growth of the post - war era would have levelled off over time. the free movement of goods, in other words, the abolishment of customs barriers and other obstacles, has created a large european market which promotes trade and growth. likewise, the freedom of services has enabled people to offer their services in all eu countries. and the free movement of capital and payments created the conditions for the euro and a common financial market. free movement of goods, capital and payments and freedom of services have allowed europe to grow more closely together, have advanced the german economy and have brought prosperity to us all. german firms last year exported goods to the value of almost €780 billion to other eu member states. without trade barriers, without exchange rate risk. that accounts for almost two - thirds of all german exports. the single market creates and secures highquality jobs in germany. according to the bertelsmann foundation, the single market contributes €37 billion a year to german real gdp growth. that represents additional income of €450 per person and year. we also owe these advantages to the euro, as the bulk of trade is invoiced in euro. the euro cements the single market ; our common currency prevents exchange rate fluctuations and competetive devaluations between the member states. the euro has thus provided stability and prosperity. without the euro, open markets in europe would not have lasted long. and all this has not only benefited enterprises, but first and foremost consumers too. the inflation rate has been stable for many years. for the euro it has averaged 1. 7 % since its introduction, compared with 2. 8 % for the d - mark. i have now spoken about the past advantages of a united europe. let ’ s now take a look at the future. here, too, i am convinced that all of us, germany too, will be able to master the challenges of the future in a united europe. 2. the advantages of europe for future challenges all countries in europe face major, predominantly global, challenges, such as increasing worldwide competition, climate change and technological progress. a. global competition no country, germany included, can turn its back on globalisation if it wishes to secure future prosperity and distribute it evenly. and we need the eu in order to retain our capacity to act and to shape global developments. the economic weight

with the federal reserve system of the us. - in general, what piece of advice can you give to your russian colleagues? we are conducting a confident and friendly dialogue. this dialogue is beneficial for both sides as we live in an increasingly globalised world, not only, but in particular, with regard to financial markets. at the same time, russia and the eu are neighbours, and real and financial integration between the eu and russia is advancing rapidly, also reflecting the growth we have seen in both economic areas. clearly, there is a need to discuss and exchange views on the central banking dimension of these economic and financial links. thus, it is not a matter of giving advice but to engage in a confident and candid exchange of views as central bankers on the various issues which are at the core of our task. - quite recently french president nicolas sarkozy was visiting russia and this visit raised questions on bilateral relations between the russian federation and the euro area. what would be your opinion in this respect? i am personally impressed by the developments in russia and certainly the trade relations between russia and the european union are very intense, supported by the impetus of robust economic growth in both the euro area and russia. let me also say that i am impressed by the importance of our relationship as regards foreign direct investment between the two economies, and particularly by the significant augmentation of this investment during the first half of 2007. three - quarters of the foreign direct investment in russia comes from the european union. so we have a very important relationship not only in trade, but also in direct investment. and this is exactly what we want ; we want to embark on a really strategic relationship. i think that the relationship demonstrated during our seminar is a good example in this respect and i am sure that this relationship will also intensify in other areas. - how do you assess the cooperation between the ecb and the bank of russia? the high - level eurosystem – bank of russia seminar which has just taken place here in moscow demonstrates that cooperation between our institutions is excellent. moreover, while this has been the fourth event of its kind, i would like to stress that our cooperation goes deeper as there have been various forms of cooperation between our institutions at all levels. our partnership has the full legacy of the bilateral relations that several national central banks of the eurosystem and the bank of russia have been developing since the 1990s. with regard to technical cooperation, we are currently holding discussions among our staff and with the