Issues as basic as the advisability of diversifying saving between entities and products, or the absence of high returns unless greater risk is involved, are not yet part of consumers’ basic financial culture. And while this remains so, consumers will be exposing themselves to risks without being aware they are incurring them. National co-ordination mechanisms between the Ministry of Economy and supervisors were also strengthened in 2005. In response to ECOFIN’s recommendations, a memorandum of understanding was signed by the Ministry of Economy (not only in its main function, but also in its capacity as supervisor of the insurance industry), the Banco de España and the CNMV (National Securities Market Commission) on co-operation in financial stability. This agreement, which is the natural extension to the national realm of that signed in the EU by the Ministries of Finance, central banks and banking supervisors, without modifying their respective powers, simply gives written expression to what were already fluid relations between the Ministry and supervisors. As a direct consequence of this agreement, a national Financial Stability Committee was set up and has since begun operating. BIS Review 60/2006  11  As usual, the final part of my address shall be devoted to the recognition and appreciation of the Banco de España staff for their effort and dedication, and to the members of the Executive Commission and of the Governing Council for their support and collaboration. Especially so on this occasion, as this speech marks the end of an intense and enriching professional experience for me.

That led in December 2005, and in March and June 2006, to respective quarterpoint rises in official interest rates from the historically low level of 2% at which they had held since  BIS Review 60/2006  3  June 2003. Despite these rises in official rates, the Eurosystem's monetary policy stance has remained propitious to the firming of the pick-up in activity and job creation. Nonetheless, the ECB is closely monitoring developments in the euro area to ensure inflation expectations remain in line with price stability over the medium term. Budgetary policies adopted a moderately contractionary stance in the area as a whole, although the persistent fiscal imbalances in several Member States continued. Consequently, the current firming of higher growth rates should drive more resolute action to correct these imbalances, the persistence of which may, in some Member States, have dented agents' confidence and may thus affect their spending decisions. The reform of the Stability Pact appears to have successfully concluded a phase of uncertainty over the application of regulations relating to the fiscal policy discipline of the euro area countries. However, preserving the credibility of the new framework requires an unequivocal and ongoing commitment by the national authorities to strict compliance with the Pact. The recent persistence of sluggish growth rates, despite highly favourable financial conditions, highlights the pressing need to see through the European structural reform agenda with firmer resolve. The revision of the Lisbon strategy in 2005 may contribute to driving this process.