These arrangements will enable the Eurosystem and the ECB to participate fully in international cooperation. This is all the more important since the international agenda contains important items for the future. The generally improved outlook for the world economy should not lead to complacency and to a diminishing of the reform efforts initiated in the aftermath of the financial crises of the past two years. Strengthening the architecture of the international financial system remains an important topic on the international agenda. The financial crises in Asia, Russia and Brazil, with risks of contagion to other emerging market economies and spill-over effects into capital markets of matured economies (e.g. LTCM in the United States), highlighted the need substantially to improve the ability to prevent and resolve crises. Against this background, a wide range of proposals was put forward and reviewed. One important aspect concerns the strengthening of the soundness of the banking systems and of regulatory and supervisory frameworks in emerging market economies. Another reform initiative relates to the transparency of the private and public sectors. The main objective here is to improve available information through the elaboration of international standards and codes of good practices. Further progress in that area will contribute significantly to crisis prevention, since improved information will enable a better risk assessment by market participants. The challenge now is to keep the political momentum for reform and to pursue the implementation of the envisaged measures in order to strengthen the resilience of the international financial system.
Following their accession to the EU, the new Member States will also – in a second step – become members of the exchange rate system ERM II and – in a third step, if and when the Maastricht convergence criteria are met – adopt the euro. In view of the implications for its own tasks and objectives and of the advisory role it can play, it is only natural that the Eurosystem will become more involved in this process. The Eurosystem should be involved in all issues falling within its exclusive or shared areas of competence: monetary policy, exchange rate policy, foreign reserve management, payment systems, financial stability and the impact of enlargement on the Eurosystem itself. The Eurosystem is currently in the process of defining its position. Let me briefly outline some preliminary observations. The Eurosystem needs to have a positive attitude towards the prospects for an enlargement of the EU. This also applies to subsequent participation in ERM II and the eventual adoption of the euro. The Eurosystem should be prepared to advise these countries in pursuing appropriate structural reforms and stability-oriented policies in line with accession and convergence criteria. The Eurosystem should stand ready to provide technical assistance to accession countries, in particular to their central banks. Equal treatment should be a key feature of the accession process. Objective and uniform criteria should apply both to the countries’ accession and to their participation in ERM II and adoption of the euro.