The completion of monetary integration in those 12 countries, as mapped out in the Maastricht Treaty, truly represents a culminating point in the process of European integration. With the use of euro cash, the single European currency has finally become a tangible reality for the citizens of the euro area - part and parcel of their everyday lives.
In this short talk I will try to argue that, in the current environment of high capital mobility, sound fiscal policy and the choice of exchange rate regime are even more important. I will illustrate my point by highlighting the general developments in emerging markets and by two examples from Finland’s neighbouring countries.