##s of the " monetary constitution " of the community. the banque centrale du luxembourg, is – in this sense – a " child " of the success of monetary integration in europe. moreover, given today's festive occasion, one could even regard these new premises of the banque centrale du luxembourg as a tangible – or shall i say, concrete – expression of the federal character of the eurosystem. in accordance with the treaty, the ncbs are integral parts of the eurosystem. consequently, the tasks conferred upon the eurosystem are to be carried out in a collective manner. in line with the principle of subsidiarity, which – in itself – embodies recognition of the fact that responsibilities should be distributed among the central institution and federated units on the basis of functional requirements, the ncbs play an indispensable role in the conduct of the tasks and functions of the eurosystem. in the run - up to stage three of economic and monetary union, many observers felt that the decentralised monetary policy framework would become too complex and inefficient. however, these concerns have not been borne out by experience, not least because highly developed information technologies make decentralisation entirely feasible. making use of the ncbs'considerable experience in dealing with their national counterparties has been, and continues to be, a real benefit to the whole system. ladies and gentlemen, it would, however, be an incomplete account of the role of the ncbs in the eurosystem to focus exclusively on implementation, or " downstream ", activities. the ncbs also make a crucial contribution to decision - making further " upstream ". the federal character of the eurosystem is most clearly reflected in the composition of the ecb's decision - making bodies. as members of the governing council, the ncb governors participate – in a personal capacity – in deciding on all centralised policy functions. in addition, the various escb committees provide a tight network of professional, as well as human, connections between ncbs and the ecb. in the work of these committees, expert knowledge and specific national experience are brought together, so as to provide input into the deliberations of the eurosystem decision - making bodies. last, but by no means least, the ncbs play an indispensable role in communications. undoubtedly, the multinational, multi - lingual set - up of the eurosystem presents a challenge,

open - ended process, it is obvious that the " eurosystem " as an additional construct to clarify the relationships between the " ins " and the " outs " within the escb is here to stay for the foreseeable future. even so, it is also clear that the introduction of the euro is the final destination for accession countries. in fact, there is even a certain – i believe, understandable – impatience on the part of future new member states to adopt the euro as soon as possible. however, the treaty lays down clear criteria for entry into the euro area, and requires their fulfilment in a sustainable manner. the eventual entry of new member states into the euro area will also require an adaptation of the institutional framework of the escb. examples of central banks from around the world, such as in united states or in germany, show that it is possible to design appropriate structures which allow effective decision - making in federal, decentralised systems and to reconcile efficiency demands with considerations of adequate representation. therefore, i am confident that we will be able to find a solution that guarantees the efficient conduct of a stability - oriented monetary policy also in an enlarged eurosystem. ladies and gentlemen, thank you very much for your attention.