of sound monetary policy making emerged among the ncb ’ s now forming the monetary union. even so, the ecb governing council is a large body, with a wealth of diverse experiences and views. the strategy must provide a commonly accepted framework within which these experiences and views all contribute to policy decisions. the strategy should also ensure that the relevant information is taken into account fully and orderly. from this point of view, the ultimate test for the success of the strategy are the extent to which it effectively guides the debate within the council and the record of actual policy decisions. i think it is fair to say that most observers agree that the ecb ’ s record has been, on the whole, very successful in these four and a half years. finally, we carefully considered the performance of the strategy in external communication. this is an area where, according to several observers, including some present here today, the strategy has worked less well. we have examined the full range of views, including those coming from the watchers ’ meetings and those expressed by market participants, academics, and the press. our announcements regarding the strategy on 8th may, which i am now going to discuss briefly, are aimed primarily at addressing certain misunderstandings that have emerged in our communication with the public. the result of the evaluation i do not need to discuss here all aspects of our review ; the documents in our website provide a complete account of them. the issues we investigated included the choice of the specific index used to define price stability, the preference accorded to headline as opposed to “ core ” inflation, how to deal with inflation differentials within the area, the stability of the euro area money demand function, and many others. i will limit my remarks to the two most debated aspects : the definition of price stability and the role of money, or the “ two - pillar structure ” of the strategy. the definition of price stability regarding the definition of price stability, the governing council confirmed the explicit quantitative definition announced already in october 1998, which is based on an objective and transparent measure, as provided by the hicp. we remain convinced that this is an important element of clarity, that contributes positively to both the effectiveness of policy and to the ecb ’ s accountability. moreover, the council noted that this quantitative definition had been very successful in anchoring market expectations. the direct and indirect measures of expected inflation in the euro area have shown a remarkable stability in the last few years, at a level just below 2 %. this is a

peter praet : interview in bdp revista, staff magazine of bank of portugal interview with mr peter praet, member of the executive board of the european central bank, in bdp revista, staff magazine of bank of portugal, conducted by ms isabel arriaga e cunha on 18 june 2018 and published on 2 november 2018. * * * europe is celebrating the 20th anniversary of the european central bank ( ecb ), and in a few months the 20th anniversary of the euro. what do you think are the main achievements and successes of these 20 years? 20 years ago the responsibility for monetary policy was entrusted to a new european institution with the mandate of maintaining price stability. this was a major step forward in the process of building an ever - closer union among the peoples of europe. we are a european institution that has been capable of deciding and acting in good times as well as in very challenging times. this is a remarkable achievement from an institutional point of view. and we have fulfilled our mandate in very difficult times – despite the financial and economic crises during the last decade. the euro is a stable and safe currency. we see with 74 % in the eurobarometer the highest approval rating for the single currency since 2004. that is quite remarkable, even more so as there are strong political forces challenging european integration. so, you see the ecb as having lived up to its responsibility so far? the ecb has had three presidents over 20 years. there have sometimes been differences. this is quite normal within a decision - making body of today 25 members, but the governing council has always enjoyed a strong sense of collegiality. we are all fully committed to fulfilling our mandate and are always open to debate and each other ’ s ideas. this is why the ecb has always had the ability and the willingness to act, whenever it was needed and within its mandate. so, back to your question : what are the main successes of these 20 years? the euro was created, because the single currency is a necessary condition for the completion of the single market. this remains true, but you need more than the single currency for the single market to function properly : once you have a single currency with a single market with free mobility of labour, goods and services, you are urged to reach a higher degree of political integration. there is a need for more european integration. this integration can take time, it will not come overnight, but each politician should keep in mind