if parity changes are frequent, participation in an exchange rate system makes little sense ; if anything, it becomes counterproductive. if there are no more currency boundaries in monetary union, there can only be a single strategy and a common orientation for the monetary system. iii this uniform strategy and this common orientation can only be a currency which is largely depoliticised, especially in a supranational monetary union in which the basic structures of the nation state remain. if monetary union is not embedded from the outset in a largely homogeneous and political union which is constituted along the lines of national government, but is founded instead on the basis of different nation states, that supranational monetary policy can only be largely unpolitical, meaning disengaged from the political influence of nation states which goes beyond the legal mandate to safeguard the stability of the currency. this is particularly valid as long as there is no all - encompassing decision - making process at the european level - - and that will probably not exist in europe for a long time to come. in addition, experience has shown that a depoliticised, consistent, long - term strategy is also superior in two crucial respects to a discretionary approach which submits to political expedience : • by creating more confidence on the part of the markets, and • above all, by being better able to provide stable money and to safeguard it on a long - term basis. therefore, a depoliticised currency is most likely to provide the opportunity of reaching a sustainable consensus among the countries participating in monetary union. after all, special national political interests do not apply here. the only thing that counts is the common objective of an enduringly stable currency. it is precisely a consensus of that kind which underlies the maastricht treaty. in future, europe must safeguard and preserve it. therefore, it is also important to see to it that, in the course of the establishment of monetary union and its institutions, there is no attempt at a sort of re - nationalisation. that goes for the appointment of the executive staff of the future european central bank as well as for how their tasks are construed. as envisaged in the treaty, neither the members of the ecb executive board nor the presidents of the national central banks represented in the governing council are there to represent national interests. rather, they are the caretakers and guardians of the new single currency - - no more, but also no less. and

would agree that no monetary policy strategy should be set in stone. instead, it should adapt to changing circumstances, and circumstances have certainly changed over the past 18 years. in this sense, our current review should translate this strategy to the challenges of our time. 3 personal relationship otmar, with your firm commitment to monetary stability and central bank independence, based on your strong academic reasoning, you should serve as a role model for every central banker. and you have personally given me guidance and advice on numerous occasions as well. 1 / 2 bis central bankers'speeches even in my days as a student, i became well acquainted with your perspective by studying your textbooks. i preferred your books to others because they offered better explanations of the intricate interrelations of monetary policy and also introduced the reader to the challenges and issues of practical monetary policymaking. many years later, i had the privilege of working together with you personally. in the aftermath of the global financial crisis, you chaired the working group neue finanzmarktarchitektur. this working group was convened by chancellor angela merkel and was better known as the issingkommission. its task was to prepare the german agenda for dealing with the financial crisis for a packed series of g20 summits over the subsequent years. it was a very intensive and productive time that i remember vividly. today, i enjoy being able to exchange ideas about monetary policy and central banking with you – sometimes as a sparring partner. when we converse over the phone, i feel that we see many things from a very similar perspective, but what makes these exchanges so valuable and engaging is the sharpness of your intellect. and for this i offer my sincerest thanks. 4 conclusion although you already celebrated your 85th birthday a few weeks ago, i would nevertheless like to take this opportunity to wish you many happy returns as well as continued good health and vitality. your word carries weight beyond our country ’ s borders, even to this day. i hope that we will continue to hear your clear, credible, and authoritative voice in policy debate for many years to come. thank you and all the best! 2 / 2 bis central bankers'speeches