. average per capita gdp stands at somewhat more than € 20, 000 ( roughly y 2. 2 million ), a third less than in japan. differences between individual countries are considerable. the public sector share in the euro - area economy accounts for nearly fifty per cent of gdp, and the aggregate budget shows a small deficit. aggregate gross public sector debt stands at 70 per cent of gdp. individual country figures, however, differ. for instance, gross public sector debt ranges from four per cent of gdp ( luxembourg ) to 100 per cent of gdp ( belgium, italy ). heterogeneity is a fact of life in the euro area. but homogeneity far outweighs heterogeneity in one crucial respect : we are united by our intention to form an integrated europe with a common market as a strong and reliable partner for the world economy. germany has 82 million inhabitants or about 28 per cent of the euro area ’ s combined population. germany ’ s share in domestic product is about a third of the euro area. in terms of foreign direct investment and trade, the german economy is even more intertwined with the world economy than the euro area. about a third of our national income is generated by exports. this share may even rise after the integration of the central and eastern european states. within the foreseeable future, some of our neighbouring countries will join the european union and maybe also the monetary union. germany, at the moment still a border territory of the euro area, will become the geographical centre of the union. since these countries are in the midst of a catching - up process, we will clearly benefit from their dynamic economies. iii i am well aware that the most important effect that the currency union will have on markets is by its performance – mainly through the degree of price stability achieved. at its start, the eurosystem saw a period of hitherto unprecedented price stability. in 1998 and 1999, consumer prices rose by only 1. 1 per cent ; in the year 2000, the inflation rate, at 2. 3 per cent, ran a little above the two - per cent ceiling in the wake of the sharp increase in oil prices. this year, after peaking in may at 3. 4 per cent, the inflation rate has been decreasing. in october, prices were 2. 4 per cent higher than a year before. in the current environment of a weak world economy, the ecb governing council is expecting a further moderation of price increases.

ernst welteke : germany as a financial centre – european perspectives for japanese markets lecture by mr ernst welteke, president of the deutsche bundesbank, at the finanzplatz - dinner, tokyo, 29 november 2001. * * * i ladies and gentlemen, first of all, i would like to thank you most sincerely for this opportunity to speak to such a distinguished audience. it is always a pleasure for me to be here in tokyo. i especially appreciate the opportunity to discuss with the financial elite of japan the chances and prospects for germany as a financial centre. looking at the financial centre germany ( which we call “ finanzplatz deutschland ” ), we have to take a european perspective. germany and eleven other european states have formed the european monetary union with the european central bank located in frankfurt. this union is only one month st from completion. on january 1, the notes and coins of the single european currency will be circulated. europeans will be able to pay bills using their single domestic currency in all twelve member states of the eurosystem. for the man in the street, this is a sea - change. in economic terms, however, the cash changeover is virtually a minor - event. europe has de facto had a common currency and a single monetary policy for nearly three years now. the eu has been developing a common market for more than half a century. however, the member states of this closely - knit economic network have ( almost ) all used a currency of their own. in 1999, economic and financial integration made a huge leap forward, as eleven – now that greece has joined, twelve – countries decided to embark on a common currency. ii clearly, the enlarged currency area and the integration process are of utmost importance for growth and stability of the german economy and for the expansion of the financial market in germany. therefore, let me start with a few figures about the euro area. its size of population, with roughly 300 million people, is quite similar to the united states. the twelve countries have twelve national governments. people in the euro area speak eleven native languages. the euro area is the most open of the three large currency areas – the united states, japan and europe. japan and the united states are our most important non - european trading partners. 17 per cent of our gdp of six - and - a - half billion euro is generated by exports, and the current account is roughly in balance. the euro area generates almost one - fifth of world exports