. monetary authorities also play an important role in this process by conducting a credible policy which leads to price stability and thus creating an environment where entering into erm ii will be smooth and credible. most of the results presented here are broadly in line with the ecb ’ s view that eu enlargement has positive implications for economic growth and welfare in both the “ previous ” and “ new ” member states ; unfortunately, these benefits have often been set aside in the public debate. already the prospect of the countries joining the eu had positive implications. as trade and capital movements have been to a large extent liberalised well before accession, the degree of integration had already reached a significant level between the new and previous member states. in fact, at the eve of eu enlargement the euro area directed around 11 % of its total exports and imports to the new member states, an increase of almost 50 % in 10 years ; the 10 new member states as a group represent one of the main trading partners of the euro area, exceeding trade with japan by far ( 8 % ) and being only somewhat lower than the european trade with the united states ( 14 % ). similarly, the share of the eu - 15 total foreign direct investments that was orientated towards the new member states was also around 12 % and tripled since 1999. while these figures are still low compared to the fdi flows directed to the us, they are considerably higher compared to those flowing to japan. in addition, the prospect of eu enlargement has significantly sheltered the new member states from adverse spill - over effects coming from other emerging markets. with eu enlargement now in place, economic and financial integration will advance further. with the extension of the single market to the new member states all remaining barriers to trade and capital flows have been removed by now, thereby supporting further integration. it is already observable that small and medium - sized enterprises from the eu - 15 countries are becoming significantly more active in the new member states, as the economic and legal environment has become more stable upon accession. let me stress that enlargement has also led to higher competition in the eu and enhanced the scope for economies of scale following the increase in the market size. by this, productivity will rise, thereby contributing to an increase in the potential growth rate of the eu. it is important to note that also the “ previous ” 15 member states will be affected by higher competition in the eu, which could accelerate structural reforms in these countries. in fact

priorities. first, we must continue to work at reducing transactions that are conducted through informal channels – in particular, through education and enforcement activities. since 2012, the bank has taken enforcement actions against 140 illegal msb operators. this included criminal and civil actions pursued against over 70 companies. we will continue to intensify our efforts on this front. second, we must continue to raise compliance and professional standards across the industry, regardless of size. every company that holds a licence must be able to meet the expectations that have been set to protect the integrity of the financial system and provide a high standard of service to the public. over the years, more companies have been given licences for longer periods. this means that we have seen good improvements in the quality of compliance and operations. companies that continue to receive shorter - term licences need to take stronger measures to address the issues that we have raised. third, we should expect that financial markets will continue to remain volatile in the period ahead. it is therefore important for the industry to improve market arrangements to ensure that msb companies will be able to respond efficiently to changes in demand for currencies by consumers and businesses. such arrangements have to include better planning and management of currency stocks as well as sourcing strategies to ensure the ready supply of currencies at efficient market rates. tonight ’ s msb customer experience awards reflects an industry that aspires to place the customer first. a price advantage can be lost easily to your competitors, but a strong customer service culture is much harder to copy. those of you that voluntarily took part in this process are sending a clear signal that your company and this industry takes customer service excellence seriously. the idea of customer service excellence is not only about the quality of service ; it is also about the industry conducting itself in a way that builds trust in the industry. the association therefore is to be commended for undertaking this initiative, as should all msb companies that have supported it. 2 / 3 bis central bankers'speeches i am also very happy to note the association ’ s launch of the msb app this evening — - which will provide consumers with convenient access to price comparisons, locations of msb companies, customer reviews, and avenues to lodge complaints and report illegal msb activities. this app reflects an increasingly digitalised society and business environment where demands for greater transparency, convenience and consumer engagement have become the norm. the msb app is a great example of how financial technology, or fintech, is changing how customers