Both the US constitution and the EU Treaty were entered into voluntarily and resulted in the closer union of the participating states. Both serve to lay down the level at which powers are to be exercised and decisions taken. BIS Review 61/2001  1  We must understand that the EU's underlying framework, like that of the US, is a product of its times. When the US constitution was drafted, the involvement of the state in economic matters was extremely limited. In fact it was not until over a century later that the US finally had a fully-fledged central bank, after earlier attempts to establish a national bank had ended in the Fed's predecessors being dissolved. By contrast, the process of European integration began at a time when the power of the state in managing and intervening in the economy was high and many thought that this power should indeed be used to a large extent. Let me point out that since the establishment of the European Community, economic integration has served not only as an end in itself, but also as a means of achieving wider objectives, including greater political integration. Progress towards establishing the so-called "four freedoms", namely the free movement of goods, services, capital and labour, required, from the start, the creation of an institutional system with state-like attributes such as a legislative, an executive capacity and judiciary functions. As economic integration has progressed, this institutional system has developed and adapted.
Thus, while the euro area shows a unique institutional setting – in contrast to monetary policy, fiscal policy is far from being single – national governments have agreed to common rules which ensure that the euro area remains an efficient and stability-oriented single economic area. 4  BIS Review 61/2001  Conclusion Let me conclude by saying that the single currency and the establishment of a new European institution responsible for monetary policy in the euro area complemented the process of economic integration that started half a century ago in Europe. This process and the institutional build-up, together with clear and coherent policy goals and an efficient allocation of the respective responsibilities, are transforming the euro area into an increasingly unified economic entity which, in many respects, resembles the US. Although most of the required structural reforms still have to be implemented, it cannot be denied that substantial progress has been made. The introduction of the euro has been and will continue to be a powerful catalyst, contributing to greater competition in the economic and the political sphere, thereby further enhancing the welfare of the citizens in the euro area. Ladies and gentlemen, political leaders throughout Europe have recognised the need for structural changes in both taxation and expenditure policies and regarding the deregulation of product and labour markets.