This policy reflects the fact that risks to price stability in the medium term have become more balanced over the past few months, although some factors which may pose upward risks still remain. Starting with the first pillar of the monetary policy strategy of the ECB, monetary data for December 2000 confirmed the moderation of monetary dynamics, which has been observed since the spring of last year. The three-month average of the annual growth rates of M3, covering the period from October to December, stood at 5.0%, slightly lower than the 5.1% for the period from September to November 2000. Hence, the risks to price stability from the monetary side have become increasingly more balanced. However, some caution is still warranted, given the previous protracted period of upward deviations of M3 growth from the reference value of 4 1/2%. Broadly similar indications are emerging from the second pillar. This year, real GDP growth may be somewhat weaker than last year, and inflationary pressures stemming from previously higher oil prices and a low external value of the euro may gradually disappear. Nevertheless, there is also need for some caution. The external environment of the euro area is currently surrounded by a high degree of uncertainty. After several years of impressive economic growth in the United States, the slowdown in growth there may be more significant than previously anticipated. Obviously a considerably weaker economic performance of the United States, which accounts for slightly more than 20% of world GDP, would have implications for world economic growth.
The geographical proximity and cultural similarities have been reinforced by the diverse strengths that exists in the region. These factors have been important in enhancing the integration process. As this greater regional economic and financial integration is advanced, it will serve as a powerful catalyst for the future expansion of intra-regional trade and investment, creating a self-sustaining and mutually reinforcing economic growth in the New Nusantara region. Ladies and gentlemen: It is my pleasure today to speak on the potential role of an integrated economic and financial platform within the Nusantara region, a region of rapid economic growth in which almost 300 million Muslims resides. My remarks will focus on the potential generated by a collaborative platform and the significance of building linkages between the Nusantara region with other parts of the world. The region's current economic progress, prosperity and financial stability has now accorded us a new strategic window of opportunity to develop new value propositions to unleash the full potential accorded by the accelerating economic and financial integration process. There are already encouraging formal and informal inter linkages between our respective financial markets as well as a higher level of engagement between the respective corporate communities, the market participants and the authorities. A collaborative platform that is based on the diverse comparative advantages of the Nusantara economies can benefit from the complementarities between our respective economies. Essentially, these opportunities will increase the potential to expand markets, increase products lines and deepen the research and development capabilities.