ANNUAL REPORT 2008 - Polymer Bank Notes of the World

which it emphasised that ten years after the introduction of the euro, the currency is a success.The Commission also put forward several proposals to improve coordination and surveillancewithin EMU, to enhance the euro area’s international role and to promote effective governanceof EMU.The ECOFIN Council discussed the first ten years of EMU at its meeting of 7 October 2008.Ministers concluded that EMU had contributed to macroeconomic stability over the past ten yearsand that, following the reform processes within EMU, the EU was now better equipped to copewith economic shocks. In order to reap further benefits from EMU and to improve the economicperformance of Member States, the ECOFIN Council agreed on several proposals, includingi) better monitoring of competitiveness developments (particularly in countries participating inthe euro area and ERM II), ii) a prioritisation of structural reform recommendations in orderto take account of the economic situation and iii) measures to better account for the effects ofeconomic cycles, and related cycles in asset prices, on tax revenues.The European Parliament also adopted a resolution on the first ten years of EMU(see Chapter 6).The general conclusion emerging from the reflections on the first ten years of EMU was thatEMU’s institutional set-up works well. However, to make EMU a continued success, policymakersneed to be firmly committed to the objectives agreed at the European level and vigorouslyimplement the necessary policies.1.2 INSTITUTIONAL ISSUESTHE TREATY OF LISBONFollowing the signing of the Treaty of Lisbonby the Heads of State or Government on13 December 2007, Member States started theratification procedure in accordance with theirrespective constitutional requirements. So far,23 Member States have ratified the LisbonTreaty. Germany and Poland are very close toformal completion of the ratification procedure.In the Czech Republic, parliamentary ratificationis still pending.In Ireland, the Lisbon Treaty was submittedto a binding referendum and failed to achievemajority support. Against this background, theEuropean Council at its meeting on 19-20 June2008 reiterated that the Lisbon Treaty, withits aim “to help an enlarged Union act moreeffectively and more democratically”, shouldstill be pursued. At the European Councilmeeting on 11-12 December 2008, the Headsof State or Government agreed to give “legalguarantees” to Ireland following the rejection ofthe Lisbon Treaty. The Irish government madea commitment to seek ratification of the LisbonTreaty by the end of the term of the currentEuropean Commission.CONVERGENCE REPORTSIn line with Article 122 of the Treaty, theECB and the European Commission preparedconvergence reports on the progress madeby Bulgaria, the Czech Republic, Estonia,Latvia, Lithuania, Hungary, Poland, Romania,Slovakia and Sweden in meeting the conditionsto join the euro area. In these reports, whichwere published on 7 May 2008, Slovakia wasassessed in somewhat more depth than theother countries because the Slovak authoritieshad submitted a request for an examinationin view of Slovakia’s intention to adopt theeuro as of 1 January 2009. On the basis of aproposal from the Commission, the ECOFINCouncil decided on 8 July 2008 that Slovakiafulfilled the conditions to join the euro area on1 January 2009 (see Chapter 3).ECBAnnual Report2008175