small relative to the size of the workforce in the eu, though large uncertainties surround these estimates. coming to the second channel, enlargement will lead to a widening of the single market and most likely to an increase in competition both for the acceding countries and for the present member states. taking the experiences with the single market as a benchmark, this could reduce price pressures ( via a decrease in mark - ups ) and enhance productivity ( by exploiting economies of scale ). together, this could contribute to an increase in the sustainable rate of growth in the acceding countries and in the present eu. the size of this effect depends on the implementation of the much - needed structural reforms in both the present and the new member states. moving towards the euro before i end, let me say some words on the adoption of the euro in the new member states. the new member states are expected to adopt the single currency at some point in the future. in fact, while not yet adopting the euro, they will be committed to striving towards the eventual adoption of the euro. the main aim of the eurosystem in the process towards euro adoption is to ensure that the monetary integration of the new member states proceeds in a smooth manner and in line with the treaty provisions. the governing council of the ecb published a policy position paper on exchange rate issues relating to the acceding countries on 18 december last year. this document consolidates into a single comprehensive policy text the previous positions of the eurosystem on the matter. as the acceding countries differ greatly in terms of economic structure, exchange rate and monetary regimes, and in the degree of nominal and real convergence already achieved, they will need to be assessed on a case - by - case basis throughout the process leading to their adoption of the euro. in this respect, no single path towards erm ii and the adoption of the euro can be identified or recommended. various strategies may be feasible, provided they are based on sound economic reasoning, conform to the existing institutional framework and contribute to the high level of sustainable convergence which is essential when joining the euro. the principle of equal treatment will continue to apply throughout the entire process of monetary integration. adopting the euro is an irrevocable decision and it is of the utmost importance that countries fulfil the convergence criteria not only nominally but also in a sustainable manner before they enter the euro area, as required by the maastricht treaty. there will be no additional criteria but neither will

that time, the efforts of europe ’ s politicians and central bankers have confounded many sceptics by making the euro an economic and political reality. clearly, the transition to a single currency did not take place in a vacuum. on the contrary, a number of factors shaped the path towards emu. some of these factors had a positive impact. i am referring here, in particular, to the remarkable progress that has taken place in establishing a climate of stable prices throughout the european union. this development undoubtedly reflects the consensus that now exists among central bankers and politicians alike, concerning the appropriate role of monetary policy in the general conduct of economic policy. also, one should not forget the dramatic events of 1989, which not only led to german unification and the fall of the iron curtain but also redefined the parameters of the economic and political environment in europe. yet there were also other factors which, had it not been for the determination of those committed to emu, could have significantly delayed or even derailed the whole process. of these, the ems crisis of 1992 - 93 immediately springs to mind. as a result of this crisis, many of those who already doubted the feasibility of emu became increasingly sceptical as to whether we would actually achieve our stated goal. thus when we consider the events of the last decade in particular, we must appreciate that the driving force towards the introduction of a single currency was, above all, the political will of the actors involved. in this regard, belgium ’ s politicians and its central bankers should be congratulated on the commitment that kept their country at the forefront of the integration process. this commitment could and still can be seen at various levels. at the political level, the policies pursued both by the government and by the bank ensured that the belgian franc became a stabilising force in the ems and that belgium was ready to be a founding member of the euro area. this achievement owes a great deal to the efforts of many persons. i can only mention a few of them, such as former prime minister dehaene, the former governors verplaetse and godeaux, and the present governor quaden, who is often seen as mr. euro here in belgium. equally, sometimes behind the scenes, i should recall the dedication of persons both from the treasury and from the bank for their contributions to monetary union. among them i should like to single out two individuals. the first is jacques van ypersele de strihou who,