the acceptance of the european union. a further challenge is presented by the substantial heterogeneity which exists between the eu and the group of accession countries. the people in the twelve accession countries will increase the eu population by roughly one - third. nominal gdp, however, would rise by five percent only. the wealth gap between the current member states and the accession countries is larger than that between the countries involved in the earlier enlargements. in addition, there is a striking degree of heterogeneity among the accession countries themselves. gdp per capita ranges from 24 percent ( bulgaria ) to 82 percent ( cyprus ) of the eu average. contemplation of eu enlargement always provides an opportunity to review the benefits of integration. integration is most clearly visible in monetary policy. the single monetary policy is designed for the euro area as a whole. sharing a stable currency has become a hallmark of european economic integration. some two months ago details of the new banknotes and their safety features were presented to the public. we are now halfway through the frontloading phase of distributing the new currency. intensive information campaigns are being conducted. monetary integration is thus taking on shape and meaning for the man and woman in the street. the single monetary policy - even during the run - up to emu - has provided many countries with an unprecedented degree of price stability. trade has intensified and financial markets in europe are integrating fast. businesses, consumers and investors alike are seeing the benefits. and even more is to be gained. three countries are currently “ member states with a derogation ” ( article 122 of the treaty ). this basically means that they do not yet participate in european monetary union, implying that there is still some scope for enlargement within the eu as it is at present. the single currency is the consequent development of the common market. the status of “ member state with a derogation ” is designed to be an intermediate stage on the path to full emu membership. v eu accession is basically a political process that passes through three stages. accession partnerships prepare accession to the eu which will culminate in full emu membership. eu accession is conditional on the fulfilment of the “ copenhagen criteria ”. these encompass, first, “ the stability of institutions guaranteeing democracy, the rule of law, human rights, and the respect for a protection of minorities ” - the political criterion ; second, “ the existence of a functioning market economy as well as

ernst welteke : on the eve of eu enlargement speech by mr ernst welteke, president of the deutsche bundesbank, at danmarks nationalbank, copenhagen, 29 october 2001. * * * i ladies and gentlemen it is a pleasure for me to have the opportunity today to present some of my views here at danmarks nationalbanken. thank you very much for your warm welcome. i have been fortunate to have had the opportunity yesterday to get around a little in copenhagen and in the northern part of sealand. time and again i note and appreciate the friendly atmosphere that exists in denmark. and time and again, as a european, i experience a real sense of regret that denmark will not be one of the countries to make full use of the common european currency from 1 january 2002. well, i hope you will acquire a taste for the euro later on. in terms of economics, there are three things that relate germany and denmark to each other. denmark ’ s most important trading partner is germany. denmark ’ s coasts and islands are a favourite destination for german tourists. and, of course, denmark and germany have a strong common interest in the upcoming eastward enlargement of the eu. that brings me to why i am here today - to discuss this vital topic with you. ii unfortunately, no discussion of economic issues can take place today without due consideration being given to the devastating terrorist attacks on new york and washington. when the attacks were launched on the united states of america on 11 september, the world economy had already weakened significantly. for the first time since the mid - seventies oil crisis, the g - 7 countries are slowing in step, although the nature of the slowing is country - specific. as a result, world trade growth is down to two percent after growth of 12 percent in 2000 [ due to a wto estimate ]. the economy in the united states had been slowing down sharply, led by lower investment spending following the it - investment boom. via the link to external demand, shrinking us investment expenditure had a negative impact on emerging markets in south - east asia. japan has not yet emerged from its decade - long slump. the banking crisis in the 1990s and unresolved structural problems still weigh heavily on the japanese economy. the world economy today finds itself in a state of heightened uncertainty. the events in new york and washington have undermined the confidence of both businesses and consumers. the extent and the duration of the military encounter as well as the extent of the