Stockholm, 7 April 2003 1 the Euro: Making Progress

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Stockholm, 7 April 2003 1 The euro: making progress Sirkka Hämäläinen Member of the Executive Board of the European Central Bank Stockholm, 7 April 2003 2 Chart 1 Intra-euro area and Swedish krona exchange rates (4 January 1999 = 1*) 1.40 1.30 Introduction of the euro 1.20 1.10 1.00 DEM/ESP DEM/FIM DEM/FRF 0.90 DEM/GRD Greece adopts IEP/DEM the euro 0.80 DEM/ITL DEM/SEK 0.70 0.60 Jul 1991 Jul 1992 Jul 1993 Jul 1994 Jul 1995 Jul 1996 Jul 1997 Jul 1998 Jul 1999 Jul 2000 Jul 2001 Jul 2002 Jan 1991 Jan 1992 Jan 1993 Jan 1994 Jan 1995 Jan 1996 Jan 1997 Jan 1998 Jan 1999 Jan 2000 Jan 2001 Jan 2002 Jan 2003 *) For DEM/GRD: 2 January 2001 = 1 Stockholm, 7 April 2003 3 Chart 2 3-month money market rates in selected legacy currencies, the euro and Swedish krona 20 18 16 14 12 Pibor (FRF) Mibor (ESP) Libor-DEM 10 Euribor Helibor (FIM) 8 Stibor (SEK) 6 4 2 0 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Stockholm, 7 April 2003 4 Chart 3 10-year government bond yields for selected European countries 15 13 11 10-year Germany 10-year France 10-year Italy 9 10-year Spain 10-year Finland 10-year Sweden 7 5 3 Jan-90 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Stockholm, 7 April 2003 5 Chart 4 Developments in the HICP in the euro area and in Sweden (annual percentage changes, monthly data) 14.0 12.0 10.0 maximum euro area 8.0 e euro area 6.0 minimum 4.0 euro area Sweden year-on-year %chang year-on-year 2.0 0.0 -2.0 Jan-91 Jan-92 Jan-93 Jan-94 Jan-95 Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 -4.0 Source: Eurostat. Euro area figures include Greece as of 2001 Stockholm, 7 April 2003 6 Chart 5 General Government Budget Balance 10 Best 5 position of a euro area country Euro area 0 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Worst position of a euro area country -5 PER CENT OF GDP CENT PER Sweden -10 -15 Source: 2002 EC Autumn Forecasts; Ameco Database. Data exclude proceeds from UMTS. Stockholm, 7 April 2003 7.

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