an immediate requirement for the eu - entry, but rather as an objective of central banks during the period of erm ii participation. but to stick to it and it's definition as formulated in the maastricht treaty is a must. the eurosystem ’ s policy position that nominal and real convergence should be pursued in parallel and that accession countries should strive to achieve price stability in the medium term is very sensible. over the past few years, there has been significant diversity in the monetary policy and exchange rate strategies of accession countries. over this period, the euro has become the main reference currency for most of these countries, including those operating managed floating regimes. in the pre - accession phase, the consistency of the exchange rate strategy with other macroeconomic policies and objectives will take precedence over the choice whether to reduce existing exchange rate flexibility. however, a certain degree of exchange rate orientation toward the euro would be in line with further economic and financial integration and would also be consistent with the prospect of erm ii entry. erm ii arrangements should not necessarily be seen as a „ waiting room “ prior to the adoption of the euro, but as a flexible framework for the achievement of further convergence. in particular, real convergence can help promote both economic cohesion within emu and integration between member states, thereby supporting efforts to minimize the risk and the effects of asymmetric shocks. ladies and gentlemen, this morning the discussions focused on the role of the financial sector. this sector is predestined to provide a key contribution to speeding up real convergence in accession countries. significant progress has been made over the past years in rehabilitating banking sectors and encouraging foreign ownership. the latter has also contributed to greater microeconomic integration with the eu. but financial sectors are still relatively small and some segments are underdeveloped. creating conditions for the sound expansion of the intermediating role of the banking sector remains fundamental to promote the efficient use of capital and sustained growth. progress in corporate governance and the enhancement of the legal frameworks that support the banking sector would also be conducive to achieving the macroeconomic objectives of the accession countries. looking ahead to an enlarged european union, it will be even more important in the future than today to keep up the momentum of existing convergence processes and to promote them further. nominal as well as real convergence are key ingredients of regional and social cohesion and thus, stability, in our union and the euro area. i am looking forward to the final session this

afternoon, which will deal with some of these issues. ladies and gentlemen, we will not be immune to adverse shocks in the future. however, based on the stable architecture of emu, i am confident that sound policies will continue to keep the euro area a robust shock absorber and the euro a stable anchor. prudent accession and enlargement policies will enhance the position of the european union and add to the importance of the euro worldwide, reinforcing it as a major and stable cornerstone of the international monetary system. this will, however, require perseverance of structural reform efforts in various fields within the european union, as well as sound convergence strategies and policies on the part of accession candidates. together we provide our strategic response to rising global competition and our common contribution to global stability. thank you very much for your attention.