Jean-Claude Trichet: Monetary policy in 2003 Introductory statement by Mr Jean-Claude Trichet, Governor of the Bank of France, at the Forum Institut für Management, Frankfurt, 2 December 2002. *  *  *  Introduction Ladies and Gentlemen, It is for me a great pleasure to participate in this “International Forum on interest rates” and to exchange views with an audience of prominent players on financial markets. I welcome the initiative of the Forum Institut für Management. In promoting discussions on challenging issues between market practitioners and economists, this contributes to the attractiveness and spirit of financial markets in the euro area. I would like to open these discussions with some remarks on structural issues that one should keep in mind when examining the prospects for financial markets in Europe. Indeed, by achieving its primary objective of pursuing price stability in a medium-term perspective, the monetary policy defined by the Governing Council of the ECB lays the foundations of the success of euro. But these foundations are also embedded in a far-reaching structural dynamic involving notably three components: –  financial integration;  –  financial stability;  –  and the prospects of European Union enlargement. I would like to make a few remarks on the challenges and opportunities arising from these three interrelated - topics. 1. Financial integration  1.1  As regards financial integration, the European monetary union has in many respects modified the way in which financial institutions organise their daily business in the euro area.
This contribution is bound to further increase given these countries’ considerable potential for growth. I thank you for your attention. BIS Review 2/2003  9