Title: The euro – benefits and challenges
Headings: The euro – benefits and challenges
The euro – benefits and challenges
Speech by Gertrude Tumpel-Gugerell, Member of the Executive Board of the ECBConference “Poland and the EURO” Warsaw, 26 November 2007
1. Introduction
2. Benefits of joining the euro area
3. Challenges related to adoption of the euro
4. Joining the euro area – the formal process
5. Future challenges
European Central Bank
Directorate General Communications

Content: Poland has been at the core of European history since a long time. Being myself from Vienna, I know very well the importance of the help of King Jan III Sobieski in ending the siege of Vienna in 1683, for the subsequent history of my country. In my speech, I would like to address the issue of experiences gained so far in the euro area by discussing the benefits and challenges of adopting the euro. I would then like to say a few words about the formal convergence process and the role of the European Central Bank (ECB) in the examination of countries’ progress with convergence. Finally, I would like to concentrate on a few specific future policy challenges, both for the euro area as a whole and for the individual countries. 2. Benefits of joining the euro area
As regards the benefits of euro area membership, these can be seen from two perspectives: from the perspective of the individual country and from the perspective of the euro area as a whole. The convergence process for euro area entry is aimed at ensuring that participation in the euro area is beneficial for both. Starting with the euro area, Monetary Union represents the completion of the Internal Market in the EU, providing full price and cost transparency to the Single Market for goods, services, labour and capital.