from country to country. given the low starting point for most countries, increasing prosperity and living standards will remain their main policy objective for quite some time. of course, accession to the eu has a positive effect on the countries ’ growth prospects. full integration in the internal market and inclusion into eu regional policies will foster the catching - up process. moving towards the euro the eurosystem has been engaged since 1999 in a constructive dialogue with the central banks of the acceding countries. the governors of these central banks already attend the meetings of the general council of the ecb as observers and will as from 1 may 2004 be full members of that council. enlargement of the eu will also lead to an expansion of the euro area at some time in the future. the main aim of the eurosystem in this process is to ensure that the monetary integration of the new member states proceeds in a smooth manner and in line with the treaty provisions. the principle of equal treatment will continue to apply throughout the entire process of monetary integration. adopting the euro is an irrevocable decision and it is of the utmost importance that countries fulfil the convergence criteria in a sustainable manner, as required by the maastricht treaty. there will be no additional criteria but neither will there be a relaxation of the criteria. the governing council of the ecb published a policy position paper on exchange rate issues relating to the acceding countries on 18 december 2003. this document consolidates into a single comprehensive policy text the previous positions of the eurosystem on the matter. it lays out the key principles for financial markets and for the public at large in a european union of 25 member states. as the acceding countries differ greatly in terms of economic structure, exchange rate and monetary regimes, and in the degree of nominal and real convergence already achieved, they will need to be assessed on a case - by - case basis throughout the process leading to their adoption of the euro. in this respect, no single path towards erm ii and the adoption of the euro can be identified or recommended. many strategies may be feasible, provided they are based on sound economic reasoning, conform to the existing institutional framework and contribute to the high level of sustainable convergence which is essential when joining the euro. the need for structural reforms while economic and monetary union has been highly successful in furthering macroeconomic stability in europe, policymakers still have to undertake important efforts to fully realise the advantages of a stable common currency. structural economic impediments

with like few others ; you had the courage and the sense of urgency that the situation required ; 1 / 2 bis central bankers'speeches you showed the authority, the expertise and the resolve to act decisively ; you were able to think – and act – out of the box, exploring the room for manoeuvre provided by the eu treaty and our statute ; in brief, you were always ahead of the curve. what better definition could we have of a true leader? so, mario : thank you for your vision and your genius intuition ; thank you for your bold and skilful leadership of the european central bank ; thank you for leaving us a credible, mature and independent ecb, fully committed to its price stability and bank supervision mandates ; and, coming from a country that underwent such a profound crisis, thank you for the support you – and the ecb under your leadership – extended to us. it made a difference, it still does. on a more personal note, and i finish here, i cannot thank you enough for the trust and solidarity you showed me two years ago. portugal was being ravaged by wildfires, and many advised you to cancel that year ’ s ecb forum in sintra. following my assurances, you decided to go ahead with the forum. a different decision would have been an enormous blow not only for portugal, but also to the ecb forum. once again, you were proven right. thank you, mario! 2 / 2 bis central bankers'speeches