scenario. a european commission study shows, for example, that during the first five years following accession, growth rates in the acceding countries would be between 1. 7 % and 3. 2 % above those that would be achieved if these countries were to proceed with current reforms without joining the eu. a comparable finding also emerges for malta : the annual growth rate would be between 1. 7 % and 1. 9 % higher in the short - run than it would be under the non - membership scenario. the difference would be even larger in subsequent years – malta ’ s growth rates could then be between 4. 4 % and 6. 1 % higher under eu membership. such findings and related considerations have led governments, political parties, trade unions and academics from twelve european countries, large and small, islands and continental ones, to conclude that membership of the eu is on balance the best available response to the challenges posed by globalization. those who perceive eu membership as a unique opportunity are equally aware that catching up with some of the most economically and socially advanced countries on earth is a major task for countries whose average income is still only some 40 per cent of the eu average. this challenge can only be overcome if the candidate countries seriously question the way they have organized and managed their economies in the past, and resolve to raise their performance. the magnitude of the task is not to be underestimated because the necessary changes are pervasive – affecting both institutions and mindsets, policies and work practices – and they also entail costs, financial and otherwise. there is clearly, however, also a widespread conviction in the other candidate countries that this would be change with a purpose. apart from the highly desirable prospect of convergence with eu income levels and living standards, a process itself facilitated by eu financial and technical assistance, the pay - off would include anchoring the future prospects of each new member country to those of an economic superpower, unfettered access to a large and rich market with a single currency, the adoption across the board of international best practices and standards and, not least, a place at the table where decisions are taken which would affect these countries even as non - members. the dynamics of regional economic integration are such that the choices available to our policymakers will be inevitably conditioned in future by the policies of an enlarged and stronger eu. it should, therefore, be clear that if it is to prosper, malta will have to seek an accommodation with the eu. the prevailing view among countries on the periphery

ardo hansson : experience with and preparations for the euro speech by mr ardo hansson, governor of the bank of estonia ( eesti pank ), at the opening of the conference on “ experience with and preparations for the euro ”, riga, 22 february 2013. * * * honourable mr. president, honourable madame speaker, honourable mr. prime minister, excellencies, ladies and gentlemen, it is a great honor to be here today in riga at this important conference and to be able to express my support for latvia ’ s euro area aspirations. looking to the future, and remembering all of the good help which we also got from other countries in the past, we would also like to give that same support other european countries joining the euro area. let me begin by stressing that latvia ’ s long track record of fiscal prudence and your recent very difficult but ultimately successful crisis management are recognized, welcomed and greatly respected in the euro area. in fact, estonia and latvia are good examples of the benefits of implementing decisive reforms, demonstrating that the beneficial effects of frontloaded fiscal consolidation, deep structural reforms and economic flexibility outweigh the initial higher costs, especially by quickly restoring the confidence that is so crucial for ending a crisis and getting a country on a path towards recovery and growth. one of the lessons we learned from this crisis is the importance of the issue of confidence. it is intangible, it is hard to measure, but it is so crucial. in order to join euro area, latvia, like any other potential member, needs to be deemed to have fulfilled the “ maastricht criteria ”, and to do so in a sustainable fashion. the recent euro area crisis has clearly revealed what can happen when the agreed rules are not followed, especially how damaging this can be for the country concerned. as a corollary, countries which sustainably adhere to these rules, and which have a clear track record of prudence and adjustment capacity, act as net providers of stability, bringing benefits to other members of the euro area. that additional benefit should be remembered. also, the sheer signal of countries wanting to join the euro area right now is also another contributor to this confidence that we all need. this morning, i would like to briefly touch on three themes. first, a bit about the reasons for joining the euro area. second, a bit about the process and making the point that it is more a process than an event. and finally, our experience to date