why not even its flexibility. simultaneously, transparency helps the economy to achieve low inflation and interest rates. it is very important that scientific academy and researchers investigate this confidence of ours, providing their contribution and conclusions. the bank of albania has assessed the importance of monetary policy transparency and has made substantial steps for raising its level, especially in the recent year. let me briefly mention some of these improvements : i believe that you share the same opinion with me, that currently the decision - making process in monetary policy area and in that of financial stability has undergone a significant improvement, not only in terms of the analysing process but also from the viewpoint of its communication. presently the supervisory council has disclosed the calendar of meetings dedicated only to monetary policy decision - making. also, since a long time, the process of its implementation, of analysis and of proposals passes through the committee for the implementation of monetary policy, a consultative body which has not only raised the quality of analysis but has also contributed to a new updated format of the bank of albania ’ s communication with the market and with economic agents in general. no doubt, the whole above - mentioned framework passes through an analytical process of assessment and forecasting, which is synthesised in monetary policy reports, part of which are the inflation forecasting models and baseline assumptions for possible economic events to which monetary policy should response. i may elaborate this point even further, but i believe that in my public presentations, in many press releases of the bank of albania supervisory council, and in our periodical publications we have made it clear that the one - digit numerical inflation target, the explanation of both operational and monetary policy framework are a central part of the bank of albania transparency. personally, i am confident that this is the core of central bank transparency. i also believe that, thanks to this increased transparency, we have been relatively successful even in the achievement of another major central bank objective, i. e., that of anchoring the inflationary pressures at the programmed levels. enhancement of transparency to such levels indicates clearly the bank of albania ’ s obligation to be an entirely accountable institution. we are confident that only in this way we will raise our credibility, will maintain and strengthen the confidence of the public and of economic agents in the bank of albania and its commitments. an aspect of transparency i would highlight is that of public understanding of central bank related issues. no effective communication exists without succeeding in understanding eachother reciprocally. no matter how broad and clear the information given by central bank

the “ speed limit ” of their economies by continuing to improve the efficiency of labour and products markets, to encourage the entrepreneurship and to foster a knowledge - based economy. 2. a question often asked is whether it was appropriate to introduce monetary union between different european countries before political union. it is true that in the case of the us for instance, political unification preceded monetary unification. there is however no precedent or pre - set scheme for the construction of europe. the single currency was the desirable complement to the single market and european leaders took advantage of an exceptional political momentum in the late 1980s to proceed with monetary union. this monetary union can operate - and it has been proven for more than three years - in the current institutional framework with monetary policy determined centrally by the governing council of the european central bank, with a high degree of independence and a clear mandate, and national fiscal policies which, though autonomous, are bounded by the rules of the stability and growth pact. the soundness of the euro is essentially based on the strength of the area ’ s economy ( the largest trading bloc in the world ) and on price stability which safeguards the euro ’ s internal value, given that its external value inevitably fluctuates on account of differentials in growth and interest rates, particularly vis - a - vis the us. having said that, i add, speaking in a personal capacity that new progress in the economic policies co - ordination among the member states of the euro - area and more political cohesion among them inside and outside europe would be welcome to consolidate monetary union and deepen european integration. 3. the prospect of enlargement is another reason to adapt the eu ’ s institutions and procedures. the eu is indeed facing another major challenge : many countries in the rest of europe are knocking on its door. the accession criteria to the european union were defined at the european summit in copenhagen in 1993. the political criteria concern the existence of stable institutions guaranteeing democracy, the rule of law, respect for human rights and protection of minorities. according to the economic criteria these countries must be viable market economies. in this connection it is necessary to verify whether prices and trade have been liberalised and whether a binding legal system, including property rights, is in place. these countries must also be competitive, i. e. capable of withstanding competitive pressure and market forces within the union. finally, an institutional criterion concerns the adoption of the “ acquis communautaire ”. moreover the accession criteria to the