During the most recent crisis, the monetary policy authorities cut interest rates sharply and rapidly, and expanded the supply of liquidity. In response to the strong and rapid appreciation  12  Cf. FDF (2012). The Confederation acquired a CHF 6 billion stake in UBS in the form of convertible bonds. 13  Cf. Ilzetzki et al (2010). 14  Cf. SECO (2012). 15  Cf. art. 99 Federal Constitution, art. 5 para 1 National Bank Act and SNB, 92nd Annual Report, 1999. 6  BIS central bankers’ speeches  of the Swiss franc facing the Swiss economy in summer 2011, the SNB introduced a minimum exchange rate of CHF 1.20 against the euro, thereby helping to stabilise the economy. The excessive appreciation of the Swiss franc is a monetary problem, because it carries the risk of deflation. So it is a problem that has to be dealt with through monetary policy. The minimum exchange rate has met with the support of the general public and the political domain. However, it should be regarded as an extreme measure. It is not a panacea for all the problems facing the Swiss economy, and carries considerable risks. 16 We have seen that both monetary and fiscal policy in Switzerland are focused heavily on stability. Swiss economic policy stands out for having good rules and a stability culture that work through the political structures in a mutually reinforcing way.
The ultimate goal of entry into the euro area is an ambitious one and, for this reason, it is necessary to start preparing for this prospect well in advance. Broadly speaking, the prospect of EU membership should encourage accession countries to make all the macro and microeconomic adjustments necessary to join the euro area. In this way, EU accession may set in motion a virtuous cycle of long-term  4  BIS Review 92/2001  sustainable economic growth. As the experience of current euro area participants shows, accession countries may encounter difficulties, and even sometimes feel frustration, during the different stages of this process. However, these difficulties should not discourage accession countries from going ahead with the project of entry into EU and, later on, the euro area. Undoubtedly, EU enlargement poses great challenges to both the accession countries and to the European Union itself. Creating the right economic and political conditions and adjusting the European institutions for the eventual integration into the EU of all accession countries is certainly an enormous task. However – and here I come back to what I mentioned at the beginning of my speech – the project of European integration should not be regarded just as a stimulating exercise of facing up to never-ending “challenges ahead”, but rather as a historic opportunity to deepen and extend the idea of Europe.