policies which aim to improve the functioning of market mechanisms and the operation of the economy as a whole. In my view, there are three reasons why such enhanced co-ordination of structural policies is necessary. First, the introduction of the euro has made exchange rate fluctuations obsolete as an instrument of adjustment.
I do not intend to dwell on these issues but they are indeed important when thinking about South Eastern Europe. In setting the stage for the discussions today and tomorrow, I will focus my remarks on three aspects.