european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank, frankfurt am main, 7 december 2006. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to today ’ s press conference. let me report on the outcome of our meeting, which was also attended by the president of the eurogroup, prime minister juncker, and commissioner almunia. at today ’ s meeting, we decided to increase the key ecb interest rates by 25 basis points. this decision reflects the upside risks to price stability over the medium term that we have identified through both our economic and monetary analyses. today ’ s decision will contribute to ensuring that medium to longer - term inflation expectations in the euro area remain solidly anchored at levels consistent with price stability. such anchoring is a prerequisite for monetary policy to make an ongoing contribution towards supporting sustainable economic growth and job creation in the euro area. after today ’ s increase, our monetary policy continues to be accommodative, with the key ecb interest rates remaining at low levels, money and credit growth strong, and liquidity in the euro area ample by all plausible measures. therefore, looking ahead, acting in a firm and timely manner to ensure price stability in the medium term is warranted. the governing council will monitor very closely all developments so that risks to price stability over the medium term do not materialise. turning first to the economic analysis, according to eurostat ’ s first estimate, the quarter - on - quarter growth rate of real gdp in the euro area for the third quarter of 2006 was 0. 5 %. the data thus confirm our assessment that economic activity continued to expand robustly, while moderating from the very strong rates seen in the first half of the year. domestic demand remained the main driver of economic growth in the third quarter, confirming the anticipated broadening of the recovery and pointing to the increasingly self - sustaining nature of economic expansion in the euro area. the information on economic activity from various confidence surveys and indicator - based estimates supports the assessment that robust economic growth has continued in the fourth quarter of this year. looking ahead, the conditions remain in place for the euro area economy to grow at solid rates around potential. while some volatility in the quarterly growth rates is likely to emerge around the turn of the year, associated with the impact of changes in indirect taxes in a large euro area country, the

zone that comprises 12 countries requires adaptation on all sides, though i am confident that we are moving up a rather steep learning curve. the months ahead will also see the final phase of our preparations for the introduction of euro banknotes and coins. guaranteeing an adequate supply of euro banknotes and coins for some 300 million citizens of the euro area, adapting cash dispensers ( atms ) and vending machines, switching the displays of retail prices, and the many other necessary changes - all this adds up to an organisational and logistical task on an almost unprecedented scale, not only for the ecb and the national central banks, but also for the member states'governments, the banking community and retailers. the preparations for these manifold challenges have now become a clear political priority. the true " test " of the euro, however, will be its acceptance by the european citizens as " their " currency. in order to familiarise the public with the new currency, its appearance and security features, the ecb, the national central banks, the governments of the euro area member states, the european commission as well as the banking community have embarked on a major information campaign. the ecb and the 12 national central banks of the euro area alone have earmarked eur 80 million for their public relations efforts. in addition, we are preparing to open an ecb information centre at the eurotower in frankfurt. in the weeks to come, we will also be launching a special " euro website ". finally, in order to gain the citizens'trust in the euro, we will have to " safeguard the currency " in a broader sense, and that includes setting up a comprehensive system to protect our new currency from counterfeiting. to this end, the ecb and the national central banks have joined forces with the governments of eu member states, europol and the european commission, and the necessary provisions are being finalised. mr. president, ladies and gentlemen, in addition to the ecb's immediate challenges, the longer - term success of the euro is also linked to the wider constitutional evolution of the european union. the draft resolution of the assembly, for instance, calls for the establishment of a true economic union as a complement to monetary union. unfortunately, the concept of " economic union " does not appear to be very well defined. in fact, i would argue that the eu, with its single market and a vast number of common rules governing economic life, has already reached an advanced stage