In this context, the ECB, together with other policymakers in Europe, has a particular responsibility in setting the right conditions for sustainable non-inflationary growth in the euro area so as to contribute to long-term economic welfare of the world economy. Thus, in my presentation today, I should like to concentrate on three aspects related to the challenges we are facing in Europe today and in the future and, in that context, on the contribution of the ECB and the Eurosystem: first, I shall reflect on how we can seize the opportunity to ensure that the current economic recovery in the euro area becomes a prolonged phase of sustainable non-inflationary growth and employment creation. Second, turning to Europe as a whole, I shall refer to the challenges related to the accession of new countries to the EU and, eventually, to the euro area. Finally, broadening the perspective, I will discuss the role of Europe, the euro and the ECB in the world economy. 1. Challenges in the euro area: how can the ECB and the Eurosystem contribute to sustainable non-inflationary growth and employment creation? Starting with the euro area, recent economic developments point to a much brighter outlook than was expected earlier this year. An improved international environment should support these positive prospects. As shown by the IMF’s recent World Economic Outlook, the growth prospects in individual countries and for the global economy in 1999 and 2000 are now much better and more balanced than expected.
A greater challenge is the potential accession of still more countries to the European Union and, ultimately, the euro area. Negotiations are currently being conducted with six countries. Negotiations with another six candidates may start soon. The eligibility criteria for their accession to the EU were formulated by the European Heads of States and Government at their summit in Copenhagen in 1993. These criteria set out what should be required of a future Member State of the European Union and thus ensure equal treatment of all applicant states. Let me briefly recall the three criteria that have to be fulfilled: •  first, the political criterion requires stability of institutions guaranteeing democracy, the rule of law, human rights and respect for and protection of minorities;  •  second, the economic criterion requires the existence of a functioning market economy as well as the capacity to cope with competitive pressure and market forces within the EU; and  •  third, the so-called “acquis communautaire” criterion requires the ability to take on the obligations of membership, including adherence to the aims of political, economic and monetary union. While accession is a political decision, it is clear that extending the EU to include new members will have consequences for the ECB and the Eurosystem.