jose manuel gonzalez - paramo : address at the opening ceremony of the euro exhibition speech by mr jose manuel gonzalez - paramo, member of the executive board of the european central bank, at the bulgarian national bank, sofia, 16 september 2011. * * * governor iskrov, ladies and gentlemen, it is a great pleasure for me to be here in sofia today at the bulgarian national bank for the opening of the euro exhibition, which is dedicated to europe ’ s single currency, the euro. it is remarkable that in a few months we will be celebrating the tenth anniversary of the introduction of euro banknotes and coins. they came into circulation on 1 january 2002 and replaced the legacy currencies of twelve eu member states in what was one of the most ambitious logistical exercises ever undertaken in europe. since then, the euro area has grown to comprise 17 countries. over 14 billion euro banknotes are currently in circulation and are used on a daily basis by more than 331 million inhabitants of the euro area. in fact, the euro banknotes and coins have become an important and integral part of the daily lives of citizens in the euro area. they can be seen as the most tangible symbol of european integration. moreover, they have brought many advantages, benefiting not only euro area citizens but also the citizens of the other eu member states, including bulgaria. for example, bulgarian citizens travelling within the euro area no longer need to change money when crossing from one euro area country to another. moreover, in particular through remittances sent by bulgarians living in the euro area, the euro has already gained a significant presence here in bulgaria. bulgarian enterprises can carry out transactions with business partners in all 17 euro area countries using just the euro. bulgaria, like any other member state without an “ opt out ” clause, is expected to adopt the euro at some point in the future. as you know, the road to euro adoption is well defined and the requirements are laid out in the treaty and the protocol on the convergence criteria. the decision to adopt the euro is a very fundamental one and should not be taken lightly. very careful preparation is required to ensure that convergence is sustainable and participation in the euro area is successful. appropriate economic policies are necessary not only before, but also after the adoption of the euro. the challenges that some euro area countries are currently facing illustrate the importance of sustainable convergence very clearly. achieving an environment conducive to sustainable convergence in bulgaria requires the conduct of economic policies geared towards ensuring

of the estonian banking sector is currently above 22 %. the capitalisation of the subsidiaries of the banks operating in estonia is absolutely sufficient to cope with loan losses markedly bigger than the current estimated 2 % level without including additional capital. the credibility of the banks operating in estonia is thus not threatened by a possible increase in the share of so - called bad loans in the loan portfolio in the course of this year compared to the current 5. 2 %. the integration of the banking system with the scandinavian and european markets, which is one of the most important factors supporting stabilisation, is another issue. the banking groups operating in estonia are able to manage capital and liquidity in a flexible way at group level. the integration of the banking system consists in the readiness of banking groups to promptly channel money flows to various subsidiaries and branches according to need. the integration of banking is supported by cooperation in the nordic - baltic region. i am convinced the daily information exchange and cooperation agreements of our region set an example of ensuring financial stability for the entire european union. in the final months of 2008, sweden initiated support schemes, which have had a very positive impact on banking groups as a whole, i. e., national support measures have been implemented from group level also on subsidiaries and branches. in this context, estonia has in the eu actively supported the principle that the implementation of rescue packages must not discriminate against other member states. 2009 economic policy priorities in estonia now i would like to say a few words about the current monetary and economic policy situation and the most important priorities for 2009. by now it is clear that the estonian enterprises and households have thoroughly changed their behaviour and expectations over the past half a year. in this respect, a big part of the adjustment process has already taken place and estonia's primary macro vulnerabilities have considerably decreased. the current account, i. e., the difference between investment and savings, has practically balanced and the financing of the economy's current expenditure is ensured by current income. in addition, estonia has no problems with financing its external debt. companies and people in estonia have taken serious steps to pave way for getting through the global crisis and recovering growth. therefore, the state needs to implement some important macro - level objectives to support the recovery of economic growth. here i mean, above all, the readiness to join the euro area as well as medium - term and long - term stability of fiscal policy. in the current situation, accession to the euro area