, however, has by no means been stable. i have had a hard time, sometimes as a central banker, and sometimes as the head of a trading company, dealing with fluctuations in foreign exchange rates. in the meantime, eu countries made efforts to stabilize foreign exchange rates between member countries and such efforts paid off at the end of the 20th century. they gave birth to a single currency, the euro. the euro will no doubt contribute to enhancing trade and investment within the region and will be a model for other regions in the world. and it will take some time to get clues to what extent the euro will play the role of a key currency and lead to the stability of foreign exchange rates between major currencies. i should also add that we might need to review the background history and rationale behind the special drawing rights ( sdr ) of the imf which were created in 1969. the other important challenge in the 21st century is how we can devise the exchange rate regime in order to stave off currency and financial crises in the emerging economies and also how to contain resultant contagion to the minimum. we understand that the past currency crises in latin american and asian countries were brought about by individual and unique factors. still, we have no choice but to make steady efforts to learn from the past crises in various countries in order to ward off currency crises and contain contagion. i am told that this conference will take up such issues related to currency crises and i am convinced that your discussions will provide a good opportunity to enhance our understanding. a better understanding of an ideal exchange rate regime may not lead to a universal currency system all the countries around the globe accept. i have several times witnessed a currency system, once optimal for a certain country at a certain time, gradually become fraught with inconsistencies and unstable in time. yet, pessimism is not what i want to spread. a series of inconsistencies in the international currency have, in my judgement, deepened our understanding of the functions and roles of an exchange rate regime and have encouraged the evolution of such a system. to rack our brains and map out ways to achieve a better exchange rate regime is one of the most important challenges for central bankers. i am convinced that with the experts from all over the world exchanging their experiences and views, this conference will contribute to meeting such a challenge. and i believe this conference will also provide clues to how to map out charts through troubled waters. thank you for your

claudia m. buch vice - president of deutsche bundesbank sylvie goulard deputy governor of banque de france the future of the euro area – the perspective of central banks statement prepared for the policy panel on “ the future of the euro zone ” as part of the joint conference “ monetary policy challenges ” by banque de france and deutsche bundesbank paris, 21st june 2018 seite 1 von 10 deutsche bundesbank, directorate general communications wilhelm - epstein - strasse 14, 60431 frankfurt am main, germany, tel : + 49 ( 0 ) 69 9566 3511 or 3512, fax : + 49 ( 0 ) 69 9566 3077 presse @ bundesbank. de, www. bundesbank. de reproduction permitted only if source is stated. it has been almost 20 years now since the euro has been introduced. the common european currency plays a vital role for the single market. the international division of labor is an important driver of growth and welfare. globally, europe is the largest economic area. a large share of germany ’ s and france ’ s foreign trade goes to other european countries. not only the real economies, but also financial markets and payment systems are closely intertwined across borders. many of these achievements are currently being debated – along with the responsibilities of the national and the supranational level in europe. the reforms of the past ten years have remedied many shortcomings. however, the process of renewing european institutions is still ongoing. at the same time, geopolitical risks have increased. multilateral agreements and economic integration are being questioned openly. this comes, not least, with economic costs, and it might create incentives to take measures leading to a fragmentation of markets, including markets for capital and financial services. to address these challenges, a common european response is needed. the key is a constructive and unprejudiced dialogue in europe that aims at finding solutions. given their analytical strength, central banks can contribute to such an informed dialogue and to reduce the influence of “ fake news ”. the banque de france and the deutsche bundesbank cooperate in a number of ways within the eurosystem. therefore, we would like to take a joint perspective that comprises the following elements : the achievements of the reforms that have been implemented in the euro area should not be played down, we have to learn from past experiences, and we should enhance dialogue on the future of the euro area. not playing