liquid and integrated capital market, another major prerequisite for the substantial use of a currency by foreign investors is confidence in the long - run stability of its purchasing power. in this regard, internal price stability should provide a sound basis for the development of the euro ’ s external value in the medium term. by maintaining price stability, the eurosystem is contributing to the emergence of a solid and stable currency over the medium term, thereby fostering the euro ’ s international role. conclusions coming to the end of my speech, let me quote mark twain by saying that predictions should be avoided, particularly those about the future. however, there is little doubt that europe ’ s agenda for the immediate and longer - term future will be full of challenging tasks. i have outlined the three areas in which europe will have actively to shape its future : the euro area, the enlargement of the eu and its role at the international level. the fact that these areas are interlinked and that progress will have to be achieved simultaneously adds to the challenges we are facing. from a more general point of view, europe should aim at becoming a stronger partner in international cooperation and, as far as possible, at speaking with one voice. such an ideal cannot be realised overnight, but every effort possible should be made to move in this direction. a stronger, more integrated and coherent europe is in the interests of the world at large. in order to be able to play this role on the international scene, europe should keep an eye on the rest of the world and, in spite of the many challenges it will face internally in the years and even decades ahead, it should avoid adopting an exclusively inward - looking stance.

trust is to respect this political legitimization by focusing and delivering on its mandate. of course, price stability is not important just because it is written in the treaty. it is also beneficial for economic growth and social cohesion, and indeed available surveys indicate that citizens attach a high value to price stability. see kohn ( 2013 ). see, among others, posen ( 2010 ). bis central bankers ’ speeches during its 15 years of existence, the ecb has consistently delivered on its mandate to maintain price stability, with average hicp inflation standing at 2. 0 % between 1999 and now. moreover, long - term inflation expectations suggest that citizens have a high degree of confidence in the ecb ’ s ability and determination to maintain price stability in the future. in sum, we have here two aspects which are both essential. on the one hand delivering their mandate is the only way for central bankers to maintain public trust ; on the other, their pursuit of their mandate must be backed indirectly by public preferences, seen from a longer term perspective. i would be the first to acknowledge that there can be a tension between these two dimensions in the short run, and that delivering price stability has been more challenging in recent years, in part due to financial fragmentation in the euro area. the ecb has been addressing financial fragmentation in the euro area since its beginning in 2011. this effort has included the provision of liquidity to the banking system in abundant and uniform terms across the whole euro area, against good quality collateral and subject to risk management limits ; as well as securities market purchases, the securities market programme and the covered bonds purchase programme, and the outright monetary transactions ( omt ) programme. i would like to emphasise that these efforts do not represent a departure from the ecb ’ s mandate, but rather the opposite – namely, the pursuit of price stability by all the necessary means that the situation has required. in short, the ecb has preserved price stability and the necessary conditions for sustainable growth, fought redenomination risks and the fragmentation of financial markets. time has been gained for other actors to contribute their part in crucial policy domains that do not belong to the competence of ecb as defined by its mandate. the european reform agenda has been put on a new footing. it is now crucial to complete this agenda at the european and national level. in this agenda there is no place for retreating into nationalism and protectionism. we know better than this and should stay focused on the key