benoit cœure : completion of the ecb - coordinated technical cooperation programme of the eurosystem with the central bank of montenegro introductory remarks by mr benoit cœure, member of the executive board of the european central bank, at the press conference on the closing of the eu - funded technical cooperation programme with the central bank of montenegro, podgorica, montenegro, 23 march 2015. * * * dear governor dakic, dear mr lys, your excellencies, ladies and gentlemen, it is a pleasure for me to be here in podgorica today to mark the completion of the ecbcoordinated technical cooperation programme of the eurosystem with the central bank of montenegro. let me first of all thank governor dakic and the central bank of montenegro for your strong support and the active involvement of your staff. we have seen seven months of intensive work and excellent cooperation designed to strengthen the institutional capacity of the central bank, an institution which is key to the overall macroeconomic and financial stability of montenegro as it moves towards joining the european union ( eu ). the programme has also helped to strengthen the contacts and relations between our institutions. i would also like to express my gratitude to our 10 partner national central banks ( ncbs ), namely those of austria, estonia, france, germany, greece, italy, the netherlands, portugal, slovakia and slovenia, who provided the expert knowledge that made this programme a success. the large number of partner ncbs in this programme is a clear indication that our institutions have not turned inward - looking, despite the major challenges faced over the past few years in the wake of the global financial crisis and then the euro area sovereign debt crisis. i would like to take this opportunity to thank the experts from all the central banks for their willingness to share their knowledge and for their dedication and commitment in taking on this additional assignment in the area of technical cooperation. let me also express my gratitude to mr andre lys and the delegation of the european union to montenegro for funding this activity through the instrument for pre - accession assistance. it is a fine example of how european institutions can work together for the benefit of eu candidate countries. i will now briefly turn to the results of the programme and how it is embedded in our institutional relations. the main deliverable of the programme is a report that lays down recommendations for changes to the central bank law and regulations as well as processes and practices in order to prepare the central bank of montenegro for membership of the european system of central

the region here. in this regard, the recovery of the economic situation in the euro area is good news for montenegro and the western balkans generally. links will grow as a result of the banking union which is being established in the eu. the new institutional set - up involves new responsibilities for the ecb, which became the banking supervisor of the entire euro area last november. the establishment of this single supervisory mechanism consolidates our relationship with the western balkans in view of the ownership structure of the banking sector. the ecb will at the same time become the home supervisor of a large part of the banking sector in montenegro and other countries in the region. the main reason, however, for our focus on the countries in the western balkans and their central banks is the prospect of eu membership. for one, the eu central banking community considers it important to support its sister institutions in this region as they seek to apply best practices for the benefit of their country and their people. this is also in the interests of all eu central banks as one day the central bank of montenegro will join the european system of central banks and, at that time, will need to meet all relevant standards and be able to function properly within the system. moreover, strong, stable and independent institutions are a prerequisite for sound macroeconomic policies and financial stability, which in turn are a condition for sustainable convergence. this is in the interests of montenegro but, again, also in the interests of the euro area and the rest of the eu. joining the european union and eventually the euro area is not an end in itself. they are a means to an end, namely to enhance the welfare of the member states and their citizens. in this regard, one of the key lessons of the recent crisis in the euro area is that in order to benefit from membership, countries need to achieve sustainable convergence. convergence must not only be reached in the run - up to joining. to sustain it requires constant policy efforts in the areas of fiscal, financial and, in particular, structural policies. bis central bankers ’ speeches pursuing growth - promoting structural reforms while maintaining financial stability and fiscal sustainability need to be key policy priorities for economic policy - makers in this context. this applies both prior to and after eu accession. the best contribution central banks can make is to ensure price stability and to remain focused on their mandate, while having a sound institutional framework that ensures their independence. there is one point that i would like to mention which makes the central bank of montenegro a special case