The inter-bank market has become highly integrated thanks to the setting up of the Target system for the real-time transfer of large-value payments throughout the euro area and in other EU countries. Let me turn now to the introduction of euro banknotes and coins, which has been the last step of a now more-than-twenty-year process of monetary integration. Euro changeover On 1 January 2002, the euro banknotes and coins were issued and became legal tender in the countries of the euro area. This was a unique and highly symbolic milestone for Europe. Let me first stress that, thanks to national efforts and the co-ordination by the European Commission and the Eurosystem, almost 100 % of cash transactions in the euro area were being carried out in euro only two months after the changeover. Although the practical changeover to the euro might be considered as an outstanding achievement, we should remain vigilant on the following issues: •  First, price stability. Although some increases in prices of a certain number of consumer goods and services have been reported, the first evidence shows that, overall, the effect of the changeover on price stability has been marginal. But consumers must keep alert, while companies and retailers remain responsible as regards price setting. In the end, competition should also contribute to lowering the prices in the short-to-medium term. •  Second, we must closely monitor the risks of counterfeiting of notes and coins: the information campaign of the Eurosystem “The Euro.
In this regard, one of the statutory tasks of the Eurosystem is, according to the Treaty, to contribute to the smooth conduct of prudential supervision policies and the stability of the financial system. I am therefore convinced that the involvement of central banks in this issue will remain absolutely crucial. •  Finally, since the tragic events of 11 September and their impact on financial stability, concerns over the potential abuse of the financial system for the financing of terrorism have received top priority in international and European regulatory discussions. The international community and, within it, the financial community, should step up its efforts to hunt down money used by organised crime and terrorism. We shall not be successful overnight, but, today, there is a strong political determination on the part of the international community to co-operate on this issue. As far as the fight against organised crime and terrorism is concerned, we can no longer accept that certain players are not prepared to observe the rules of international legal co-operation. rd  Beyond structural reforms and financial stability, the accession of new Member States to the European Union and to EMU is the third challenge that I have identified. The last challenge but not the least. Accession of new Member States to the EU and EMU Twelve countries from central, eastern and southern Europe are currently negotiating accession to the EU, of which ten, according to the calendar endorsed by the European Council, will join the E.U.