The FROB legislation not only provides the Banco de España with the necessary tools to act when there are serious problems of viability, but also provides for a second course of action, of a preemptive nature, geared to preventing these problems from materialising. With the approval of the FROB, institutions and their managers were urged to assess their own situation and to adopt the decisions needed to ensure their viability, preventing the more traumatic effects that might stem from supervisory intervention, both for the institution itself and for economic activity in the regions in which it pursues its business. This second means by which the FROB may act involves supporting integration processes between institutions which, without being in serious danger, are seeking to improve their efficiency, streamline their management and re-scale their productive capacity. When the FROB undertakes such “pre-emptive” action, the Banco de España is entrusted with ensuring that the operations approved have a sound business plan that contributes to strengthening our financial system and that is accompanied by measures aimed at a realistic adjustment of bank resources to the new market conditions, using in this connection the smallest volume of public funds possible. Unlike cases in which institutions are taken under control and their directors replaced, and where decision-making is entirely the prerogative of the Banco de España, authority to pursue this second course of action lies with credit institutions and, in the case of savings banks, authorisation by the regional government is also required.

Income per capita is only half of the highest GNI in the group, or only 33% of the average GDP per capita (PPP terms) of the 27 EU countries. We have a strong need of funds and permanent technical assistance in order to continue with and accelerate our structural reforms. The Greek example is a newest lesson. European and other funds, without all the painful and grave structural reforms, could not protect the country from facing the present crisis. However, it seems that, without structural reforms, they just boost the illusion. The recent crisis has highlighted the need for the international financial institutions to have adequate level of resources and flexible, innovative and swift technical infrastructure. It is a prerequisite for a well targeted, timely, coordinated and efficient response to global shocks. The strong increase of IBRD disbursements, policy based lending and advisory services in 2009, the dominance of social protections programs, on the background of the social implications of the crisis, pinpoint the rapid and well targeted adjustments in the lending policy and expertise provided by the World Bank. The share of the World Bank financial support to the region in the total WB financing in 2009 rose to 20% (compared to the average of 16% for the previous three years). Significant weight was put on the enhanced social protection, regulation adjustment for the purpose of trade promotion, financial sector reforms and improved governance. Dear guests, Let me once more repeat that looking forward, the role of the World Bank becomes even more pronounced.