mr. tietmeyer considers the challenge of the euro for europe special address by the president of the deutsche bundesbank, prof. hans tietmeyer, at the conference on “ the challenge of the euro for emerging markets ”, convened jointly by the national bank of poland and the european economics and financial centre in warsaw on 12 / 2 / 98. europe is facing major challenges. not only will it have to take important decisions affecting the course of future integration. above all, europe must also stand up to the test of global competition while preserving its basic values of freedom and solidarity. the immediate task facing the countries of central and eastern europe is economic transformation - making their economies internationally competitive and open on a sustainable basis. jumping into the “ deep water ” of international competition with privatised enterprises and banks has set off radical reforms having far - reaching implications. one of the great thinkers of the enlightenment, immanuel kant, said that the true philosophers are those who carry conviction through their teachings and by setting an example. poland may be said to be one of the most successful countries in transition so far. for years now, it has been achieving notable rates of growth. the central bank is doing a good job under its president. it is universally recognised that the rate of inflation has been brought down sharply and that this has been a crucial factor underpinning the restructuring of the economy. furthermore, important steps have now been taken towards autonomy for the polish central bank ; they are reflected in the central bank act which recently came into force. germany congratulates poland on the progress that has been achieved. and we are pleased that many different contacts exist at all levels - including, of course, the field of central banking. i should also like to mention the notable scale of direct investment in poland by german enterprises. it is gratifying to see that particularly small and medium - sized enterprises are involved in that area. but, where there are many points of light, some things inevitably cast a shadow. according to the oecd, one of the major risks is that the expansion of the current account deficit cannot be sustained at a manageable level. furthermore, the oecd experts are calling for the acceleration of restructuring, especially in the areas of privatisation and pension reform. i am certain that the responsible decision - makers in poland are taking that advice seriously. ii the eu countries are also facing a problem of transformation. increasingly fierce worldwide competition is setting great challenges for most of the eu

. 2 / 3 bis - central bankers'speeches we are making online and printed versions of the abridged historical booklet available to the general public, in german and in english. after that, the full academic volume and the monographs will be published. based on the publications, we will set up further projects to disseminate the study findings. before i give the floor to you, professor brechtken and professor ritschl, may i express – on behalf of everyone involved in this project – our appreciation and gratitude for all your work. 3 / 3 bis - central bankers'speeches