percentage points of gdp between 1999 and 2009. the euro area is a vast continent of more than 331 million citizens. by population size, it is comparable with the other large economy of the developed world, namely the united states, with a population of 310 million. in terms of economic output, the euro area is second only to the united states. it accounted for about 20 % of world output in 2010, twice the share of japan ( about 10 % of world output ), and somewhat less than the united states ( about one - quarter of world output ). second, the euro is a stable and credible currency. for over 12 years now, the european central bank – together with all national central banks – has been delivering what it is expected to deliver : price stability in the euro area as a whole over the medium - term, with an average annual inflation of less than 2 %, but close to 2 %. since we are in kiel, let me add that in germany the average yearly inflation has been 1. 5 %, which is a better result than for any such 12 year period over the last 50 years. bis central bankers ’ speeches we have thereby been safeguarding the euro ’ s purchasing power. this has been achieved despite several headwinds to the european economy : oil prices went up ; the internet bubble burst ; violence and wars have raged in some parts of the world ; and starting in mid - 2007 we had to cope with the most severe global financial crisis in over 60 years. taken as a whole, the euro area performed soundly also when looking at other macroeconomic indicators, or comparing with other large developed economies. adjusted for differences in population growth, per capita gdp growth in the euro area over the last decade has been almost the same as in the united states, at about 1 % per year. the dispersion of real gdp growth rates across euro area countries is comparable with the equivalent dispersion across u. s. states. for instance, the difference between the fastest and slowest - growing u. s. states is not of a markedly different order of magnitude as that between euro area countries. overall employment in the euro area increased by 14 million during the first twelve years, compared with a rise of about 8 million in the united states. and the overall yearly public finance deficit in the euro area is presently about half that in the united states or in japan. the imf projects indeed the euro area ’ s fiscal deficit to reach 4. 4 % of gdp

impressive. i ’ ve been associated very closely to the construction of europe, particularly to the strategy of my own country towards monetary and fiscal stability and structural reforms. when we decided to start this strategy – which i call the “ competitive disinflation strategy ” – in 19821983 it was a very moving moment. i experienced also very tense moments in the 80 ’ s and the 90 ’ s as president of the paris club for rescheduling the debts of the developing and emerging countries. i presided over the rescheduling of the debt of brazil, of poland, of egypt, of soviet union. finally i participated actively in the maastricht treaty negotiation. when it was decided by the heads of states and governments that we will start the euro no later than january, 1999, it was a moving historical moment. and more recently when on the 9th of august 2007 the executive board of the ecb had to take bold decisions to cope with the start of the turbulences on the money market that was also an important moment. ( anmerkung der red. : die ezb pumpte zu diesem datum in bis dahin nicht gekanntem umfang liquiditat in den markt und war damit die weltweit erste notenbank, die auf die krise reagierte. ) do you personally still convert to franc? no. do you understand the germans sometimes still regret the loss of their old d - mark? the promise which was made to all nationalities, and in particular to the germans before the euro started was the following : the new currency will be at least as confidence - inspiring and as a good store of value as the previous national one. and i can say today to you : the promise has been met. the euro, which is now almost eleven years old, is as good a currency, as solid and stable as was the dm.