Reden und Präsentationen

Es gilt das gesprochene Wort.

Ladies and Gentlemen!

It is a great pleasure for me to address this distinguished audience on the occasion of this grand celebration here at the historic University of Graz. Let me extend a special welcome to my dear colleague Governor Gaspari, and let me take this opportunity to share my admiration for the wise circumspection with which you, Mitja, guided the process that led the first former transition country into the euro area at the beginning of this year.

Today’s gala evening is not the first international celebration of Slovenia’s entry into the euro area, as we already honored this event at the European level in January. However, I am sure that the long-standing, close friendship of our two countries truly justifies a festivity in a smaller, bilateral circle.

Let me emphasize that Slovenia’s introduction of the euro represented a precedent in two respects: Slovenia was the first of the ten new EU Member States to adopt the euro. And it was the first country to perform both the adoption of the euro and the cash changeover on a single day – in an approach that is called the “big-bang approach.”

The adoption of the euro was the result of a convergence process that has brought Slovenia close to the most advanced European economies over the past years. Slovenia managed to meet the demanding convergence criteria through stability-oriented macroeconomic policies and tough structural reforms in a climate of social partnership.

Economic growth in Slovenia has been markedly higher than the euro area average over the past few years. As a result, per-capita income levels in Slovenia are exceeding those in Portugal and Malta and come very close to those of Greece. This catching-up was primarily achieved through increasing labor productivity, but also by keeping employment rates above the euro area average. 

In its external relations, the Slovenian economy is highly intertwined with the 12 other euro area members. In 2005, about half of Slovenia’s total exports went to the euro area, while two-thirds of Slovenian imports came from there. In addition, most of Slovenia’s total inward FDI comes from the euro area.

Austria plays an important role in Slovenia’s external economic relations: It is among its major trading partners, ranking third after Germany and Italy. By the same token, Austrian companies are by far the most important direct investors in Slovenia. Austrian banks, in particular, are among the leading foreign market players in the Slovenian banking sector and provide significant financing for the Slovenian corporate sector. Things look slightly different from the Austrian perspective, however, as the value of trade and investment with Slovenia represents only a small fraction of total Austrian cross-border activities. Thus, while the close economic ties between our two countries are certainly fruitful for both sides, the asymmetric weight of our bilateral links demonstrates the great responsibility Austrian companies have in shaping economic developments in Slovenia.

Naturally, the challenges posed by participation in monetary union must be seen against the benefits the euro brings for all of us. Membership in EMU will contribute to maintaining both Slovenia’s and Austria’s economic stability. The credibility of the Eurosystem’s monetary policy and its sustainable fiscal policy framework will improve our resilience to shocks. By solidly anchoring medium- to longer-term inflation expectations in the euro area at levels consistent with price stability, monetary policy can make an ongoing contribution towards fostering sustainable economic growth and job creation in the euro area.

Equally, the adoption of the euro has eliminated the cost of exchanging money for most international transactions of our citizens and businesses. This means more convenience for tourists and higher price transparency for consumers. It also supports further trade integration and produces efficiency gains due to the elimination of exchange rate risks within the euro area. Moreover, further financial market integration will lower the cost of capital.

The introduction of the euro in Slovenia is a landmark not only for Slovenia itself. Actually, Slovenia’s active participation in monetary union is important for the euro area as a whole, even though the country is relatively small in terms of GDP (0.3%) and population (0.6%).

The Slovenian example shows that the euro area is open for all EU Member States that meet the conditions set out in the Maastricht Treaty. Slovenia has also proved that it is indeed possible for a new Member State to successfully meet these conditions.

Moreover, due to its geographical location and its historical roots, Slovenia forms a natural bridge between the euro area and the economies of Southeastern Europe. This special position can be expected to secure Slovenia an important role in the future economic and political integration of Southeastern Europe with the EU and the euro area.

In this context, let me emphasize the fruitful cooperation between Slovenia and Austria – and in particular between Banka Slovenije and the Oesterreichische Nationalbank – over the past few years. I am proud to say that as part of this cooperation, the OeNB contributed its share to Slovenia’s successful adoption of the euro. The experience we made before and during the Austrian cash changeover in 2002 was a valuable asset to be shared with our partners at Banka Slovenije.

Our close technical cooperation covered a wide range of topics: from public relation campaigns to legal aspects of euro introduction and from accounting rules to cooperation with commercial banks and the business sector. Based on this close cooperation and also for geographical and logistical reasons, it was the OeNB that delivered the euro banknotes for the cash changeover to Slovenia on behalf of the Eurosystem.

I would like to point out that Graz has played a special role in advancing the cooperation between our two institutions. In the run-up to the euro changeover in Slovenia, several meetings were held here in Graz – a wise choice, I would think, given the town’s long tradition of close interregional cooperation in business and academic research.

Not surprisingly, it was in Graz that “Adria–Alpe–Pannonia” was launched as an initiative to promote the integrated development of a European region uniting six countries. As neighboring economies, Austria and Slovenia are closely interconnected and these close ties will become even more effective thanks to the euro. To strengthen the ties between our countries and thus assume our common responsibility for the European integration process, the OeNB wishes to continue its close cooperation with Banka Slovenije.  And the city of Graz will hopefully continue to be the venue for some of our common events.

Let me conclude by congratulating our Slovenian friends and neighbors on their formidable achievements and let me express my hope that other new Member States will soon follow on the road toward full monetary integration that Slovenia has so successfully taken.