of. in particular, we also look at the development of monetary aggregates, as inflation is ultimately always and everywhere a monetary phenomenon – a point repeatedly stressed by milton friedman and supported by a tremendous number of empirical studies. conclusion after this overview of macroeconomic projections, their characteristics and their role for monetary policy, let me conclude by saying that, nowadays, the basic principles of stabilityoriented central banks are largely the same everywhere. inflation should be low and stable, and a central bank ’ s policy should focus primarily on achieving this goal. the actual monetary policy strategies, or, in other words, the way in which central banks try to live up to this goal, in fact differ to a certain extent, as i outlined earlier when referring to the eurosystem ’ s and the bank of england ’ s approach. however, irrespective of the differences between the respective strategies, these variations should not be overstated either. ultimately, i think that the approaches adopted do not differ dramatically. this applies to the method and the outcome, too. evidently, either stabilityoriented approach proves to be largely successful in containing both inflation and inflation expectations. against this background, i do not see any signs that one approach might be clearly superior to the other, as some commentators suggest from time to time. more precisely, i do not see any obvious shortcomings in our own approach either. nor do i perceive any obvious advantages – or any which are, at the same time, free of obvious limitations – in the policy approaches taken by other central banks which would lead me to conclude that any change is needed in our own framework. in general, any monetary policy strategy has to take due account of the specific situation of the currency area for which it is responsible. as this is so, different policy frameworks for achieving the same ultimate goal – price stability – are an absolutely natural outcome, not a surprising one. furthermore, i think that another aspect is well worth mentioning. the diversity of specific approaches which are, nevertheless, built on the same stability - oriented fundamentals, enriches the wealth of experience available to monetary policymakers. this helps to draw further conclusions for a robust and successful monetary policy in a continuously evolving economic landscape and, hence, helps to maintain price stability in the long run. having said that, just one last point : speakers should exhaust their topic, not the audience. therefore, i shall conclude with only two sentences. thank you for your attention. i am now looking

to be complemented by growthenhancing structural reforms to facilitate entrepreneurial activities, the start - up of new firms and job creation. here, governments should be more ambitious. at the european level, there has been substantial progress towards reinforcing the economic governance framework. we have seen a strengthening of the fiscal rules of the stability and growth pact and the introduction of the fiscal compact, about which we spoke in the parliament last december. and we are implementing the new focus on correcting macroeconomic imbalances. the recent crisis has shown that a well - functioning emu needs not only a strong institutional set - up for monetary policy at the centre, but also one for economic policies. ensuring competitiveness of all euro area countries should be seen as a common responsibility. i am sure many of you here in the european parliament will agree that we need a change in the mindset of how national policy - making is conducted and perceived. the economic policies of euro area countries are, ultimately, domestic policies for the euro area. precisely because of spill - over effects, they must be subject to mutual surveillance, and corrected if required in the collective interest of the euro area as a whole. this should apply both to fiscal and macroeconomic policies. bis central bankers ’ speeches but surveillance alone is not sufficient. citizens also expect from europe common answers to the common challenges which all euro area countries are facing. in a context of global competition and ongoing fiscal consolidation, euro area countries should join their forces. given that they share a single currency, they have even stronger reasons than other countries to work together. this can be in the field of research and development, education or infrastructure, they should strive for cooperation as much as possible. let me add that, just like competitiveness, i see financial stability clearly as a common responsibly in a monetary union. during the crisis, we have observed strong negative spill - over effects across euro area countries and between the banking sector and its respective sovereign. national supervisors and treasuries are also confronted with the well - known problem that during good times, large banks work as european institutions but in bad times fall on national shoulders. ensuring a well - functioning emu implies strengthening banking supervision and resolution at european level. european integration has brought peace and prosperity. while i hesitate to sketch out the long - term end point of the integration process, i am convinced that we need to actively step up our reflections about the longer term vision for europe as we have done in