adoption of the euro by the new member states will be introduced ; while, at the same time, there will be no relaxation of the criteria laid down in the treaty. following the publication of the convergence reports, consultation of the european parliament and a discussion among the eu heads of state and government, the ecofin council will decide, on the basis of a commission proposal, which member states fulfil the necessary conditions to adopt the euro. in case of compliance with the convergence criteria, more practical arrangements will then be set in motion, relating, for example, to the integration of the national central banks into the eurosystem and to the cash - changeover procedures. the fact that already today the ncbs of all the eu member states participate actively in committees and other meetings within the framework of the european system of central banks will facilitate this process. i cannot, and will not, pre - empt the analysis of the forthcoming convergence reports. let me stress, however, that once one economy fulfils all the convergence criteria set out in the treaty in a sustainable manner, i have no doubt its participation in the euro area will be highly beneficial for all parties. i thank you for your attention.

cut wages below the levels consistent with productivity, in an elusive search for temporary gains in market shares. 4 only in this way can reforms be a positive - rather than a zero - sum game. different countries require different solutions. but there are clearly some common european factors, and coordination can make a difference. most obvious is the need for a more ambitious single market agenda, and in particular for services. the capital markets union project is also key as a facilitator of capital reallocation to more productive firms. but we should also remember that deepening the single market can only happen within a stable legal framework that provides a level playing - field and stimulates competition – which is to say, the single market is not only about removing trade barriers, or even just a customs union, but about having common governance and common rule of law under the jurisdiction of the ecj. it guarantees a secure framework for rule setting, regulatory enforcement and dispute settlement for citizens and businesses. such legal certainty is crucial for investment decisions, and it in turn supports productivity and welfare. still, even if we are able to elicit such a creation and diffusion of new technologies, we know it will not solve all problems. increasing automation, for example, might simply displace workers into lower productivity jobs, causing aggregate productivity to stagnate. and more worryingly, it might actually destroy jobs faster than it creates them. so it is clear that if we are serious about focusing on innovation and diffusion, we also have to be serious in thinking about redistribution. that entails thinking about ex ante redistribution : making sure that the markets created by new technologies are efficient and firms are not capturing excessive rents at the expense of consumers. and it entails thinking about ex post redistribution, which requires efficient tax and social security systems, and about ways to manage globalisation such that both objectives are attainable, within countries and across them. in my view the sooner we start this discussion, the better. and there is no better place than davos to begin. 1 veugelers, r. ( 2016 ), “ the european union ’ s growing innovation divide ”, bruegel policy contribution, issue 2016 / 08, april 2016. 2 / 3 bis central bankers'speeches 2 eib ( 2016 ), restoring eu competitiveness, january 2016. 3 oecd ( 2015 ), the future of productivity, oecd, paris, france. 4 see cœure, b. ( 2014 ),