monetary union depends on their causes, size and persistence. what are the facts about the relative macroeconomic performances of euro area member countries? and what is the diagnosis about the causal factors and the underlying processes that explain them? i would like to point out two interesting facts that are contrary to popular perceptions. the first is that during the first six years since the creation of the euro, the growth and inflation differentials observed between member countries have not been greater than those recorded in the 25 years before the establishment of emu. on the contrary, according to some measures, the dispersion in growth rates has recently reached a historically low level. the second fact is that both growth and inflation differentials in the euro area since the introduction of the euro have been broadly of the same order of magnitude as the corresponding differentials observed across regions and metropolitan areas in the united states. these facts would seem to suggest that, at least on the basis of size, the heterogeneity observed in the macroeconomic performance of euro area member countries is not exceptional and thus need not be a cause of alarm. nevertheless, there are certain other developments that suggest caution and point to the need for a deeper and more comprehensive analysis. one such development relates to the significant and persistent divergences in measures of competitiveness between member countries. the diverging competitiveness is a consequence of various factors and policies as well as of market adjustment mechanisms, which in some cases reflect rigidities in labour markets and the low degree of integration and competition in certain product markets, particularly for services. the persistence of these developments suggests that adjustment mechanisms are functioning slowly and that self - equilibrating forces are not sufficiently strong. the extent and the cumulative effects of differences in competitiveness between some euro area countries raise concerns about their impact on growth. in addition, other factors – some exogenous, such as competitive pressures resulting from globalisation, and some internal, influencing consumer sentiment – affect economic activity and tend to compound the adverse effects of the erosion of competitiveness in some countries or partly offset the benefits from the increased competitiveness attained in other countries. a better understanding of the factors and processes that determine economic fluctuations, inflation persistence and competitiveness developments across the euro area countries will contribute to the diagnosis of the present situation and the assessment of future trends. two papers in this workshop provide insights and useful results to this end. the extent of synchronisation of economic activity in europe is examined in the paper by domenico giannone

currently, virtually all the directors and key executives of bank islam are new, with diverse banking experience. in accelerating the provisions and in instituting the measures to address the bank's system, processes and business culture, it has now paved the way for drawing in new shareholders. it can now offer a valued proposition. and indeed, the participation of a new strategic investor will in fact further strengthen the bank. this has allowed the existing and new shareholders to focus taking the bank to the next level and to capitalize on the new opportunities the environment offers. indeed, the bank can gainfully advance to venture abroad to explore new business opportunities in the regional markets. the growth prospects will also be further strengthened by the overall performance of the industry and the sound and mutually reinforcing inter - linkages of the various market components in the islamic financial system. in closing, i would like to take this opportunity to congratulate bimb holdings berhad, bank islam malaysia berhad, dubai financial llc and lembaga tabung haji for their contributions in the successful completion of the share subscription agreement for bank islam. i wish bank islam and its shareholders every success in taking the bank to greater heights in its future endeavours. thank you.