##ously set by the eurosystem – will demand a steep learning curve from policymakers, businesses, trade unions and the public at large. conclusion i should like to conclude by remarking that the establishment of economic and monetary union marks an outstanding historical achievement, a new quality in the process of europe ’ s integration. while we can certainly look back on the first few months of this endeavour with considerable satisfaction, we are aware that the task of making emu a success will be an ongoing one. but, as my remarks have revealed, there is every reason for optimism : the euro ’ s success is built on sound foundations. further improvements are, of course, necessary, but we are confident that they will be accomplished. clearly, the eurosystem ’ s stability - oriented monetary policy is a principal ingredient of a successful emu, in which the euro enjoys both the trust of citizens as well as the confidence of investors.

of the european capital markets. even though capital movements within the european union had already been liberalised by the early 1990s, the prospect of a truly pan - european capital market was still remote. it was the advent of the euro which provided a decisive impetus towards the further development of a single euro area capital market. this market is set to become even deeper and more liquid over time, and hence more efficient. • one particular area of the capital market in which the markets in euro area countries have traditionally been considerably less active than in the united states is the corporate bond and commercial paper market. the evidence of the last few months suggests that the issuance of euro - denominated bonds has indeed exceeded dollar - denominated issues. these data indicate not only the high level of confidence in the new currency, but also point towards the gradual establishment of a deep and liquid bond market in the euro area in the foreseeable future. such a development should have a favourable impact on business activity and might stimulate further consolidation by way of mergers and acquisitions. • third, the introduction of the euro also appears to lend new urgency to greater integration and efficiency in equity markets. as consolidation within the financial service and banking sectors has increased the size and geographical reach of intermediaries and fund management institutions, they seem to be pressing for market - places to become more concentrated in order both to reduce costs and to enhance liquidity. these developments might eventually also lead to a closer coordination of trading practices and technology among stock exchanges, and the planned link - up of eight exchanges in europe appears to point in this direction. yet at the same time, the use of advanced information technology renders the physical location of stock exchanges less relevant. a developing perception of the euro area as an entity in itself is also reflected in the emergence of area - wide equity indices which provide investors with opportunities to monitor area - wide equity positions as well as, in some instances, positions in area - wide industrial sectors. to sum up, the introduction of the euro has led to a perceptible shift in euro area ( and eu ) financial markets ; greater depth, liquidity and integration should improve their efficiency, and a more efficient allocation of capital should mean improved financing opportunities for both sovereign and corporate borrowers. having set out the immediate impact of monetary unification on financial markets, i should like to give you a brief overview of the institution at the heart of managing our new currency, namely the eurosystem. the role of the eurosyst