christian noyer : presentation of the european central bank ’ s annual report for 2001 introductory statement by mr christian noyer, vice - president of the european central bank, to the committee on economic and monetary affairs of the european parliament, brussels, 23 april 2002. * * * it is my pleasure to present today the fourth annual report of the ecb, covering the year 2001, which, for the eurosystem, was notably marked by the finalisation of the preparations for the euro cash changeover. the introduction of the euro banknotes and coins the introduction of the euro banknotes and coins on 1 january 2002 concluded the process of establishing a monetary union in europe, which had been launched some ten years ago. this event can undeniably be regarded as a milestone in european monetary integration and, indeed, in european integration as a whole, as the single currency, which had already been used successfully for non - cash operations since 1999, became a tangible reality for more than 300 million citizens in the euro area. the preparations for the cash changeover were complex and required from the outset close cooperation between the eurosystem and eu institutions, national authorities as well as a broad range of economic and financial agents, in particular the banking sector, security carriers, the cash - operated machine industry and, of course, retailers. the ultimate testament to the euro's success, however, was the response of the european citizens, who accepted their new currency rapidly and with enthusiasm, as shown by the swift withdrawal of legacy currencies in the first weeks following the cash changeover. indeed, the introduction of the euro banknotes and coins proceeded far more smoothly than we had dared to expect, and i should like to take the opportunity today, on behalf of the ecb, to express once again my gratitude to the citizens of europe and all the other parties involved for their contribution to making the cash changeover a success and for their fruitful collaboration with the eurosystem over the past years. review of economic and monetary developments let me now turn to the review of economic and monetary developments. in the light of the central role of maintaining price stability that the treaty assigns to monetary policy, i shall start by reporting that annual average hicp inflation in the euro area was 2. 5 % in 2001. the lagged effects of the increase in import prices in 2000, together with the impact of livestock diseases on unprocessed food prices in 2001, contributed to the increase in annual hicp inflation rates,

confidence that the euro will prove a stimulus for further economic and financial integration. the introduction of the euro banknotes and coins has not only enhanced price transparency, it will also highlight the fact that the european single market is not yet complete and that a number of regulatory, administrative or legal impediments to the free circulation of goods, the cross - border provision of services and to labour mobility still exist. it is my belief that the euro, as a visible symbol of european identity in everyday life, will increasingly bring these obstacles to light and stimulate efforts to eliminate them. in this way, the euro will accomplish one of the pre - eminent functions of the single currency, namely to " crown " the establishment of a single market in europe. finally, i should like to mention that this is my last appearance in this forum as vice - president of the ecb. i should like to thank the members of the committee on economic and monetary affairs for the very fruitful exchange of views, both in the context of my presentation of the ecb's annual report and on other occasions. this committee has indeed played an important role in bringing the euro closer to the citizens of europe.