It is this process and its implications on which I want to focus in my remarks today. The preamble of the European Treaty makes “ever closer union” a goal of the EU. For some people, this creates anxiety. It seems to promise an inexorable movement towards a future super-state.
The Bank of Israel participated fully in the strategy, and more than once provided the main motive force behind it, particularly in the 1990s when we moved from foreignexchange control to free capital flows, from a fixed exchange rate to an exchange rate determined by market forces, and from inflation at a level of 15 percent to 20 percent a year to price stability.