8 million in the united states. this is encouraging, but it remains insufficient. we cannot be complacent in any respect. europe must develop its growth potential continuously. all countries must pursue resolutely their structural reforms, in pension systems, product market and labour markets. jointly, they have devised the europe 2020 strategy. education, research and innovation is one key area ; resource efficiency a second ; and high employment and social cohesion the third main area. the european central bank fully supports all efforts along this europe 2020 strategy. a specific example is the completion of the single market in services. it makes full economic sense that the internal market in services, which is the sector in which the majority of people work, is fully completed. new areas of growth, like the digital sector, energy and the environment will clearly benefit from more competition and create new jobs. 4. conclusion let me draw to a conclusion. we are today 12 years into economic and monetary union. i have emphasised our achievements and i have emphasised where we need to strengthen the framework. monetary union can function effectively in a europe of sovereign states with an appropriate economic union. and creating an appropriate economic union is where the reform efforts need to be directed. for that, we have to do in europe what alexis de tocqueville so admired in 19th century america, whose greatness did not lie “ in being more enlightened than any other nation, but rather in the ability to repair her faults. ” bis central bankers ’ speeches when repairing the faults in our governance framework, we must not let the indications of economic recovery distract ourselves from the urgency for action. policy - makers must keep in mind that the governance failures of the past are still to be fixed and the growth challenges of the future still to be solved. while i have stressed the challenges we face, we must also recognise our achievements. europe is in the vanguard of nations working together peacefully. we have replaced confrontation and conflict with cooperation and consensus. we have combined political freedom with economic freedom and social peace. these are remarkable achievements – and they are quite clearly achievements to which many people elsewhere in the world are aspiring. it is for this reason that i have dedicated all my working life to put the french - german friendship to the service of europe as a whole, with all nations united. and it is for this reason that i believe deeply in our economic and monetary union. the europe to which i have dedicated my career is one where different countries, different

bordeaux, cadiz, porto, marseilles, genoa and venice – to name but a few. the european single market is a vast economy. the euro area itself is a truly continental economy. the population of 331 million exceeds slightly that of the united states, and in geographical terms lisbon and helsinki are almost as distant as los angeles and new york. interestingly, the european union as a whole and, in particular, the euro area are significantly more open in terms of trade and finance. in the year prior to the crisis, 34 % of gdp of the euro area was imported or exported. in the united states, the ratio was 24 % of gdp. the euro area is the world ’ s largest exporter, accounting for 15 % of world trade – 50 % higher than the shares of each the united states and china. europe ’ s openness is also remarkable in international finance. last year, international financial assets and liabilities reached almost 170 % of gdp, compared with 140 % for the bis central bankers ’ speeches united states and 80 % for japan. inward and outward direct investment, at 47 % and 39 % of gdp, are larger than for the united states, where both are less than 30 %. the euro area is indeed a remarkably open economy. speaking in bremen, i would say that the euro area of today is a continuation of the best tradition of the hanse : open to the world. * * * the maritime traditions of bremen resonate deeply with me. having family roots in saintmalo in my beloved region of bretagne, i share your passion for sailing and the sea. indeed, i have often used a seafaring metaphor for europe ’ s monetary union, arguing that it is better to be on a large and steady ship rather than on a small vessel, particularly in the turbulent waters we have experienced in recent years. as guardians of the single currency, we at the european central bank know that we have to stay on course. we have only one needle in our compass, which is price stability. we are presently observing an increase of prices largely reflecting higher energy prices. as i said on behalf of the governing council both in january and in early february, risks from the medium - term outlook for price developments are still broadly balanced but could move to the upside. this is the reason why we must remain permanently alert. * * * this evening i would like to speak to you about the achievements of our monetary union and about the challenges for the broader construction of em