ECB's Padoa-Schioppa on exchange rate issues

In a speech on 'Exchange rate issues relating to the acceding countries' given on 2 February, Tommaso Padoa-Schioppa of the ECB said a smooth participation in ERM II will require that the overall policies of participating Member States are consistent and that major policy adjustments take place prior to entry into the mechanism.

The basic interest of the euro area in the process of monetary integration is to ensure that the new Member States proceed towards the euro in a smooth manner and in

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