concern is how a non - controlled expansion of the digital euro as a form of investment could, indeed, threaten the ability of authorities to properly maintain financial stability. as a matter of fact, a too attractive and accessible digital euro could foster a significant migration of banks deposits, thus compromising their intermediation and lending capacity plus also likely destabilizing the entire banking system in times of financial stress. to prevent these macroeconomic consequences from happening, ongoing discussions are currently focusing on what potential safeguards could be built into the digital euro, yet final decisions remain pretty much open at this stage. the main reason being they not only depend on the practical feasibility of the various available tools but also on the likelihood of different scenarios to materialize and the extent to which the latter may actually compromise banks ’ resilience. as such, the fine - tuning of design features of the digital euro calls for additional research which i strongly believe the members of cebra are best positioned to provide us with. as of today, operational and legal considerations have been the bulk of our work thus far. the digital euro project faces little chance of success unless it can prove to rely on a solid theoretical foundation. that means one that takes into account aspects such as potential distortions of cbdcs to cross - border capital flows, the prospect of a displacement of international reserve currencies or the degree of fragmentation of capital markets they may introduce due to unresolved interoperability issues. hence, the time is ripe to ask and encourage you all to actively consider including cbdcrelated topics in your respective research agendas as means to broadly support our efforts in landing at the best possible blueprint for a digital euro : one that helps maximize its benefits while containing its hazards. and having said that, i think it ’ s about time that we not only feed our minds and souls but our bodies, too. so, thank you very much for listening and bon appetit!

with a standard fluctuation band of ±15 % around their central rates against the euro, while estonia and lithuania kept their currency boards as a unilateral commitment. in order to ensure a smooth participation in erm ii, countries have firmly committed to take the necessary measures to preserve macroeconomic and exchange rate stability. participation in erm ii has been smooth. the four currencies in the erm ii have traded continuously at or close to their central rates, while short - term interest rate differentials vis - a - vis the euro area have been small. beyond erm ii membership lies the adoption of the euro, the crowning achievement of the monetary integration process. in order to adopt the euro, non - participating eu member states have to achieve a high degree of sustainable economic and legal convergence. every country will be assessed on its own merits and its own particular situation, on the basis of a strict analysis of the performance relating to the maastricht convergence criteria. let me stress that there is no pre - set timetable for the enlargement of the euro area. economic challenges for the new member states how far are the new member states on this road towards the euro? the countries that joined the eu this year have shown impressive economic growth rates and have made great strides in reducing inflation. they belong to the most dynamic economies in the eu, having gone through profound structural changes. for example, they have taken thorough measures to reform their product and labour markets, and some new member states, in some respects, may be even more advanced than other, existing eu countries. they have become more integrated with the euro area, with the major part of their trade now occurring with the euro area and tight financial links : as a matter of fact, the share of the new 10 member states in the total external trade of the euro area stands around 11 %, compared with around 14 % for the us and 3 % for japan. in addition, the transition process has brought their economic structures closer to those of the euro area. at the same time, while remaining a diverse group in many respects, the new member states still display distinct economic characteristics that differ from the euro area. their income - per - capita and productivity levels are still low relative to the euro area, which may have an impact on their inflation rates. let me mention two particularly important economic challenges that the new member states are confronted with on the road to the euro : price stability and fiscal policy. price stability is an essential