In the initial years under the fiscal rule, petroleum revenue spending rose approximately in pace with the GPFG’s capital. The fiscal rule, based on a real return of 4 percent, thereby provided an effective constraint on petroleum revenue spending over the fiscal budget. In recent years, high oil prices and solid returns have resulted in strong growth in the value of the GPFG. This has provided scope for substantial increases in petroleum revenue spending, although spending has been around 3 percent of the GPFG’s value in recent years. In a period of low unemployment and solid economic growth, it has been appropriate to set aside a greater share of the revenues. Recent years have been characterised by wide fluctuations in returns, with extreme variability during the financial crisis. Volatility on the world’s stock exchanges and in financial markets impacts the market value of the GPFG and thereby the anchor for fiscal policy. Although the depreciation of the krone has increased the GPFG’s current value in krone terms, this veils the fact that its international purchasing power is unaffected by changes in the krone’s value. Such volatility has become more difficult to manage as the GPFG has grown in size. Oil prices have fallen sharply over the past six months. Even if prices edge up again, we have been reminded of the uncertainty associated with future revenues. Lower oil prices imply slower growth in the GPFG than previously estimated.
Lorenzo Bini Smaghi: On the occasion of the inauguration of the Euro Exhibition in Rome Speech by Mr Lorenzo Bini Smaghi, Member of the Executive Board of the European Central Bank, at the inauguration of the Euro Exhibition, Rome, 3 April 2009. *  *  *  Dear Fabrizio, Ladies and Gentlemen, It is a pleasure for me to be here in these wonderful premises of Banca d’Italia in Rome to celebrate with you the occasion of the 10th anniversary of Stage Three of the Economic and Monetary Union (EMU) and of the adoption of the euro. We are also here to inaugurate “The Euro Exhibition”, presenting the euro banknotes and coins through a range of innovative features, which we hope will be appreciated by the public in Rome. 1. First 10 years of the euro  On 1 January 1999 the Third Stage of EMU began with the irrevocable fixing of the exchange rates of the currencies of the 11 Member States initially forming the euro area. Monetary authority for the new currency was transferred to the Governing Council of the European Central Bank. The euro became the currency of over 300 million citizens of Europe. The number of countries participating in the EMU grew over the years. Today, euro banknotes and coins are legal tender in 16 of the 27 Member States of the European Union, and used by almost 330 million citizens in the euro area. Slovakia has recently become the 16th member of the euro area.