A second step is the participation in the so-called Exchange Rate Mechanism II, ERM II for short. This implies maintaining a stable exchange rate within a band of +/-15 percent vis-à-vis the euro. Successful participation in the ERM II band for at least two years is required before the country can introduce the euro.
On the basis of this strategy, I am confident that the Governing Council has so far taken – and will continue to take – the necessary monetary policy decisions to maintain price stability over the medium term. I believe that my confidence is well founded. Our announcement of the strategy was generally well received by the public and the financial markets reacted favourably.