jurgen stark : economic perspectives and monetary policy speech by mr jurgen stark, member of the executive board and the governing council of the european central bank, at fionia bank investment conference, nyborg, denmark, 8 september 2008. * * * it is a great pleasure to have the opportunity to speak today at this conference. i very much welcome the opportunity to explain the ecb ’ s view on the economic perspectives and the challenges for monetary policy. i would like to structure my presentation along three points : first, i would like to devote a few minutes to reflecting on the 10th anniversary of the ecb. the creation of the euro has been one of the greatest endeavours in monetary history and an important step for europe. i think it cannot be denied that our single currency has been a great success. second, i would like to turn to the recent economic and monetary situation and outlook ; globally and in the euro area. third, i would like to close with some remarks on challenges to monetary policy - making and liquidity management in the current circumstances. 10th anniversary of the ecb when it was founded on 1 june 1998, the ecb became the central bank for europe ’ s single currency, the euro, which was launched in january 1999. the euro area originally consisted of 11 eu member states. subsequently, in three enlargement rounds, four additional member states have adopted the euro and on 1 january 2009 slovakia will become the 16th member of the euro area. this shows that the euro area is not a closed shop. the euro is now the currency for 320 million european citizens. the inflation rate in the euro area has been slightly above 2 % on average during the first 10 years following the creation of the emu, an unprecedentedly low level in historical terms. this is a remarkable result ; all the more so taking into account that the euro area was affected by a particularly challenging sequence of adverse shocks for monetary policy : the burst of the “ new economy ” bubble and the terrorist attacks in 2001 as well as several waves of strong global commodity price increases. coping with these challenges the ecb has been able to build an impressive track record. key to the success has been the high level of credibility of the ecb in safeguarding price stability in the euro area. this credibility is primarily rooted in the institutional framework of the ecb enshrined in the maastricht treaty and the ecb ’ s stability - oriented monetary policy strategy. as regards the institutional framework, the first cornerstone

jean - claude trichet : press briefing on the ecb convergence report opening remarks by mr jean - claude trichet, president of the european central bank, at the press briefing on the ecb convergence report, frankfurt, 20 october 2004. * * * ladies and gentlemen, welcome to this special press briefing on the publication of the ecb ’ s convergence report 2004. let me start by saying that only 15 years ago i could not have imagined that we would, in october 2004, be presenting to you a report examining the economic and legal convergence of sweden and ten countries from central and eastern europe and the mediterranean. at that time, most of these countries were still deprived of democracy and economic freedom. the prospect of joining the european union and eventually adopting a single european currency was out of sight for the most imaginative minds. but since 1 january 1999 the euro has been a reality, and since 1 may 2004 ten new countries are with us in the european union. the rules of eu membership say that at least once every two years, or at the request of a member state not participating in the euro area, a report needs to be prepared by the ecb and by the european commission. let me briefly recall the relevant treaty articles and the procedure laid down therein. according to article 122 of the treaty establishing the european community, the two institutions must report to the council on the progress made in the fulfilment by the member states of their obligations regarding the achievement of economic and monetary union, in accordance with the procedure laid down in article 121 ( 1 ). article 121 ( 1 ) stipulates that these reports must include an examination of the compatibility between each member state ’ s national legislation, including the statutes of its national central bank, and articles 108 and 109 of the treaty and the statute of the escb. the reports must also examine the achievement of a high degree of sustainable convergence. this is to be done by reference to the fulfilment by each member state of the criteria on prices, fiscal positions, exchange rates and long - term interest rates. thereafter, the treaty foresees that, after consulting the european parliament and after discussion in the council meeting in the composition of the heads of state or government, the council must, acting by a qualified majority on a proposal from the commission, decide which member states with a derogation fulfil the necessary conditions to adopt the euro on the basis of the criteria set out in article 121 ( 1 ). the publication of