increase competition and to strengthen the growth of the economy. this is the only way to increase the long - term growth potential in the euro area. with regard to labour markets, unemployment has fallen considerably over the past few years to stand at 8. 3 % in april 2001. the number of unemployed has declined by more than one million compared with april of last year, even though, most recently, the decline in unemployment has actually decreased slightly in seasonally adjusted terms. an unemployment figure of 8. 3 % is, however, much too high. further incentives need to be made in respect of the demand for and the taking - up of employment. this requires not only further reforms to the tax systems, but in particular also to the social security systems. 5. the implications of the euro cash changeover finally, i should like to talk about an issue which, until the beginning of next year, will be the focal point : the euro cash changeover. by 1 january 2002, 14. 25 billion euro banknotes and 50 billion coins will be produced for the 12 member states of the euro area. the introduction of the banknotes and coins is an enormous logistical challenge. as you know, the ecb has, therefore, decided that the frontloading of euro banknotes and coins to credit institutions in the euro area and the sub - frontloading of euro banknotes and coins by credit institutions under special conditions to professional cash users can begin on 1 september this year. owing to its monetary nature, the euro cash changeover does not only present a logistical challenge, but also affects the economic analysis within the framework of the monetary policy strategy of the ecb. a visible sign of the potential impact of the cash changeover on monetary developments is the annual rate of growth of currency in circulation which has been negative since the end of last year to stand at - 2. 9 % in april. preparations by euro - area residents for the cash changeover could be a factor in these developments. it is possible that this factor will become even more important during the course of the year, when a growing number of the population pays in its liquid reserves to the banks, which are not directly needed as cash on hand. the effect of these transactions on overall developments in m3 should, however, be relatively minor, as a large part of the liquid reserves, which is held as cash on hand, should be invested in deposits which are also included in m3. if this is the case, m3 growth should largely remain unaffected.

european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank and mr lucas papademos, vice - president of the european central bank, frankfurt am main, 10 january 2008. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our first press conference of 2008. let me therefore wish you all a very happy new year. i would also like to take this opportunity to welcome cyprus and malta as countries which have adopted the euro as their currency. with cyprus and malta, the euro area now comprises 15 eu member states. accordingly, mr orphanides, the governor of the central bank of cyprus, and mr bonello, the governor of the central bank of malta, became members of the governing council on 1 january 2008. let me now report on the outcome of our meeting, which was also attended by commissioner almunia. on the basis of our regular economic and monetary analyses, we decided at today ’ s meeting to leave the key ecb interest rates unchanged. according to the latest information, strong short - term upward pressure on inflation has continued, with hicp inflation remaining at 3. 1 % in december. as regards the medium term, and in a context of very vigorous money and credit growth, our assessment of upside risks to price stability has been fully confirmed. the governing council remains prepared to act pre - emptively so that second - round effects and upside risks to price stability over the medium term do not materialise and, consequently, medium and long - term inflation expectations remain firmly anchored in line with price stability. reflecting its mandate, such anchoring is of the highest priority to the governing council. the economic fundamentals of the euro area are sound. however, the ongoing reappraisal of risk in financial markets is still accompanied by uncertainty about its potential impact on the real economy and the risks surrounding the outlook for economic activity are on the downside. we will continue to monitor very closely all developments over the coming weeks. allow me to explain our assessment in greater detail, starting with the economic analysis. the latest information on economic activity suggests that quarterly growth at the turn of the year was at a more moderate pace than the quarter - on - quarter rate of 0. 8 % observed in the third quarter of 2007 ( revised upwards from 0. 7 % ). this assessment is in line with indicators for business and consumer confidence which, while declining over the past few