this picture of a favourable outlook for price stability that resulted from our economic analysis was not challenged when cross - checked with the monetary analysis. much of the strength of monetary growth in early 2003 was due to the high level of economic and financial market uncertainty prevailing at that time, which prompted portfolio shifts into safer, short - term liquid assets included in m3. in the governing council ’ s assessment, the accumulation of excess liquidity was less of a concern for price stability as long as the economic recovery in the euro area remained gradual. in view of the moderation of inflationary pressures in the first half of 2003, the key ecb interest rates were reduced by 25 basis points in march 2003 and by 50 basis points in june to reach the historically low level of 2. 0 %. since then rates have remained unchanged. the low level of interest rates across the maturity spectrum provides ongoing support to the economic recovery in the euro area. let me now turn to more recent developments. the evidence available continues to indicate that the moderate recovery of euro area real gdp growth that started in the second half of 2003 has continued in 2004. although recently released economic indicators have been mixed, we remain confident in our expectation of a gradual recovery, a continued, though modest, real gdp growth in the euro area. conditions remain in place for the recovery to continue in 2004 and to gather strength over time. the strength of global demand provides a positive external environment in which euro area exports are expected to grow significantly both this year and next. on the domestic front, favourable financing conditions and an improvement in corporate earnings should continue to support investment in the euro area. euro area firms also look set to return to issuing equity, although only in modest quantities, favoured by the decline in the cost of equity. issuance of debt securities by non - financial corporations was robust throughout 2003, but slowed somewhat at the start of 2004. growth in real disposable income should sustain private consumption at a time when there are no financial constraints on households that could pose an obstacle to higher spending. over time, private consumption should also be fostered by an improvement in the labour market situation. looking at price developments, annual hicp inflation has been below 2 % since december last year. over the coming months, annual inflation rates will edge up, mainly on account of energy price developments and increases in indirect taxes. however, looking beyond these short - term fluctuations, the outlook for price stability continues to be favourable. in a context of gradual economic recovery,

jean - claude trichet : state celebrations for the introduction of the euro in slovakia statement by mr jean - claude trichet, president of the european central bank, at the state celebrations for the introduction of the euro in slovakia, bratislava, 8 january 2009. * * * dear president, prime ministers, excellencies, dear governors, ladies and gentlemen, the introduction of a new currency is an historic moment for a country, and the introduction of the euro in a member state through the treaty - based convergence process is an historic moment for europe. robert schuman stated in his founding declaration that europe will be made through concrete achievements which create tangible solidarity among its people. european monetary union is a concrete achievement, and the euro is a tangible sign of solidarity among its people. the euro is also a tangible sign of increasing economic integration in europe, which is to the benefit of stability and prosperity for its citizens. today, with slovakia ’ s adoption of the euro, we therefore have every reason to celebrate. slovakia ’ s economic achievements on the way towards euro adoption slovakia has made remarkable progress in both nominal and real convergence. this has been reflected in a decline in inflation and a significant economic growth record. slovakia ’ s performance is based on the firm foundations of a bold economic reform programme implemented earlier this decade. cooperation between the ecb and narodna banka slovenska on the side of central banks, this historic moment has been prepared through a very close cooperation over the last couple of years between the european central bank and narodna banka slovenska under the leadership of governor sramko. this cooperation has laid the groundwork for the smooth and successful introduction of the euro in slovakia. the sustainability of convergence the introduction of the euro in slovakia will further enhance the benefits of the single market. the euro removes exchange rate uncertainty between slovakia and many of its most important trading partners, integrates the country into one of the world ’ s largest economies and helps to shield it from some of the effects of the international financial turbulence. it is also important to stress that the introduction of the euro must not give rise to complacency. in order to ensure that convergence is sustainable and that the slovak people can reap the full benefits of euro adoption, the slovak public authorities will need to pursue ambitious economic policies on all fronts. a rigorous and credible implementation of fiscal policy in line with the commitments of the stability and growth pact is particularly important. other policy measures would need to focus on slovakia