At the present time Estonian banking sector is responsible for a significant share of the profits of their owners. Profitability means effectiveness at least comparable to the financial sectors of our neighbouring EU member countries and a somewhat greater flexibility of production factors, especially the flexibility of labour markets. Profitability also means a relatively rapid adoption of new technologies. For example, the number of card payments per capita in Estonia should be roughly equal to the respective German figures while the share of internet banking customers is somewhat higher (and the list of internet-based bank services somewhat more exhaustive) in Estonia. Estonia would like to be one of the first new members of the club - we would like to become a member of the euro area at the earliest possible moment. That would mean joining the ERM2 as soon as possible, with the present EUR/EEK exchange rate and the currency board arrangement in place. Provided nothing adverse happens, Estonia might be in a position to submit its application for ERM2 membership as early as mid-2004. It should, perhaps, also be mentioned that at the present moment, Estonia is in a relatively advantageous position among the candidate countries as to its ability to meet the Maastricht criteria and other important requirements.
We have drawn our plans and the work has been going on for some time. In some cases we can take advantage of our still-remembered experience of the 1992 monetary reform. In other cases, like some settlement-systems-related issues, we must wait for European institutions to make up their minds about the details. There is no doubt, however that technical preparation would not slow us down. IV. In conclusion  Speaking about future developments in Estonia in the light of the challenges shortly discussed above, it is good to bear in mind that policy efforts are necessary also after becoming part of the EU and the EMU. Fulfilling the Maastricht criteria and being 'admitted to the club' cannot be seen as 'the ultimate achievement'. For instance, the recent achievements of the economies of our Nordic neighbours compared to the developments in a wider Europe should make us very aware that there are real advantages in fulfilling the Stability and Growth Pact. I am convinced that EU membership will be beneficial to Estonia. But I am also very sure that Estonia has something to offer to the EU in its turn - some experience on handling issues pertaining to the  BIS Review 42/2003  3  flexibility and mobility of production factors, for example. It is important that Estonia, like every other future EU member state, offer its contribution towards the common goal. 4  BIS Review 42/2003