At the end of 2000, it probably will be in at least four euro area member countries and in a total of at least seven European Union Member States. Turning to the third condition, it is important to remember that the considerable improvement in the cost competitiveness of the French economy in the 1980s and 1990s played a very large part in the recent success of our economy, a fact that we perhaps tend to neglect a little today. If the French economy has grown more quickly than the other main European economies between 1997 and 2000, whilst recording the largest external surplus in Europe and the second largest in the world over the last three years, it is to a large extent because, thanks to our low inflation, average unit wage costs in the manufacturing sector have, since the start of 1987, increased significantly less in France than in the euro area as a whole (some 16% less), as can be seen from the following graph: Competitiveness of the French economy Unit production costs in the manufacturing sector (unit wage costs) Relative to Monetary Union Member States 120 115 110 105 100 95 90 85 80 75 Jan. 1986  Jan. 1988  Jan. 1990  Jan. 1992  Jan. 1994  120 115 110 105 100 95 Gains in competitiveness 90 85 80 75 Jan. 1996 Jan. 1998 Jan. 2000  Nominal exchange rate: from the franc to the euro (base 100 in 1987).
Jean-Claude Trichet: Report on the operations of the Banque de France  Introductory letter for the Annual Report of the Banque de France, by Mr Jean-Claude Trichet, Governor of the Banque de France, submitted to the President of the French Republic, the President of the Senate and the President of the National Assembly. *  *  *  I am honoured to present you with the report on the operations of the Banque de France, monetary policy and the prospects for it, as required by law. As is the custom, I also submit herewith the Monetary Policy Council’s comments on the past year, which was marked by the introduction of the euro and the implementation of the single monetary policy. After a brief slowdown at the end of 1998 and the start of 1999, French economic growth became firmer from the second quarter of 1999 onwards. The expansion became more broad-based, which points to robust growth in 2000, as do forecasts and business surveys. Foreign trade, which had an adverse effect on activity in 1998, sustained GDP growth in 1999 thanks to the recovery in exports that started in the spring. Furthermore, domestic demand remained strong. The particularly high level of household confidence, the surge in job creation and the purchasing power generated by continuing subdued inflation fostered firm consumption growth, which rose by 2.2% on average in 1999, while corporate investment recorded sustained 7.6% growth. Overall, GDP increased by an average of 2.9%.