As I explained, the structured convergence process towards the adoption of the euro which is laid down in the Treaty provides the best guarantee for a smooth inclusion and a mutually beneficial life in the monetary union. Against this background, unilateral euroisation is something which we would not support because this would be a way circumventing the stages foreseen by the Treaty. 2. I would like to point out that the house of EMU is built upon solid foundations. The house of EMU is open to newcomers; it is not a “closed shop”. However, we would like to welcome the newcomers through the front entrance, and not via the backdoor. 3. Since Iceland is a European state, it is of course entitled to apply for EU and subsequently euro area membership. I was asked to provide you with some more information about the time frame of this latter scenario. As Iceland is a member of the European Economic Area, its accession to the EU could proceed relatively smoothly. As for accession to the euro area, the minimum time between joining the EU and joining the euro area is two years. This is because the exchange rate convergence criterion foresees that an applicant euro area country must participate for at least two years – without severe tensions – in the Exchange Rate Mechanism II. This should allow the applicant country to demonstrate that it can manage its economy without recourse to excessive currency fluctuations, thus mimicking somewhat the conditions under a monetary union. 4.
8  BIS central bankers’ speeches  Table 2 Domestic scenario (annual change, percent)  2014  1.9  GDP  2015 (e) Dec.15 Report 2.1  2016 (f) Dec.15 Report  Mar.16 Report  2017 (f) Mar.16 Report  Mar.16 Report  2.1  2.0-3.0  1.25-2.25  2.0-3.0  Domestic demand  1.1  2.0  1.3  2.5  1.5  2.3  Domestic demand (w/o inventory change)  -4.2  0.7  -1.5  1.7  0.5  1.0  Gross fixed capital formation  2.8  2.4  2.2  2.7  1.8  2.7  Total consumption  1.1  -1.7  -1.9  1.0  0.6  2.40  Goods and services exports  -5.7  -1.4  -2.8  1.6  -0.6  2.10  Goods and services imports  -1.3  -1.7  -2.1  -2.6  -2.5  -2.0  Current account (% of GDP)  20.9  20.0  20.4  19.1  19.9  20.2  Gross national savings (% of GDP) Nominal gross fixed capital formation (% of GDP)  23.0  22.0  22.7  21.9  22.6  22.1  23.0  22.0  22.7  21.9  22.6  22.1  (e) Estimate. (f) Forecast. Source: Central Bank of Chile.