finally, let me make a few remarks about inflation. fears are regularly expressed about the possible inflationary impacts of euro adoption. our evidence suggests that this was positive but very small and one - off, similar to what was seen in older euro area members where euro introduction effects accounted for about 0. 2 – 0. 3 % one - off increase in prices, mostly in services sectors, but no measurable effect on inflationary expectations or in terms of core inflation. over the past few years, our inflation has indeed been higher but we believe that this can be largely explained by a range of other factors not directly related to euro adoption, including the catching - up effect, commodities prices, the specific timing of changes in tax policy, and so on. most importantly, the ecb has built up a very strong track record in keeping inflation in the euro area near our targeted level, and our commitment to continue on this path is very strong. bis central bankers ’ speeches in conclusion, estonia ’ s two - year euro area experience has affirmed our belief that our place is within the euro area, not outside. our economy, which once was very much out of balance, is now in balance and developing about as well as could be expected in difficult circumstances. furthermore, and this is very crucial, opinion polls show that public support for the euro appears to be rising and has clearly been above 50 %. if one also considers recent improvements in the outlook for the euro area as compared to 6 or 12 months ago, i believe the support will continue rising in the future. never in our history has estonia been engaged in shaping europe to such an extent. we have a say in the processes affecting us, from monetary policy decisions to the euro area ’ s future. for us, it is a matter of economic security, future prosperity and international credibility. i wish latvia determination and success in following the same path. thank you! bis central bankers ’ speeches

well placed to absorb both positive and negative shocks during the last 15 years. deregulation and reform in preparation of the eu membership has allowed us to fully integrate our economic and financial systems with the single market. however, that kind of approach requires, in today's conjuncture, forward - looking structural reforms in almost all eu member states, e. g. in the product, services and labour markets, healthcare and social insurance systems etc. for estonia the adoption of the euro is the only logical step and the overarching policy priority. in this context, we would like to emphasize that it is in the interest of the whole european union that the euro area enlargement takes place in accordance with the clear set of well known rules while the criteria are applied, in line with the treaty provisions, on an equal and economically meaningful manner. the countries joining should have a proven track record to fare well under the common monetary policy. this being the case, the euro area membership would fasten the catch - up process in these countries and strengthen the countries'ownership in the eu - wide macroeconomic co - operation at large. macroeconomic stability and economic flexibility are prerequisites for the new member states to ensure that investment in physical and human capital is sustained and outlays for research and development further increased. higher growth and stronger policy coordination on the eu level will also strengthen the social dimension of enlargement.