6 FM Global's investments into deepening its capabilities in Singapore are well aligned with MAS' Financial Industry Transformation Roadmap, or ITM 2025, launched early last month. As a key risk financing centre for Asia, we want insurers here to develop deep, data-driven capabilities in risk assessment, risk quantification, risk advisory, and across key risk areas such as climate, cyber, health, and pandemic. 7 The insurance industry in Singapore will also need a deep talent pool to support its growth ambitions, increasingly comprising multi-disciplinary expertise, combining scientific, engineering, underwriting and business knowledge. FM Global's recently established research unit will collaborate with local institutions such as the NTU's Earth Observatory, to share practical, scientific approaches to commercial property risk management. FM Global is also partnering with local universities to offer internship programmes in sustainability and climate resilience. And under ITM 2025, MAS has also set aside $ million in grant funding over the next five years to support capacity building, new financing solutions, and talent development. 8 In conclusion, Singapore's insurance industry is well positioned to support the region's growth and development through its strong risk management data and insights, ex-ante risk advisory and ex-post risk financing solutions, and stewardship of clients' business models to build resilience. The opening of the FM Global Centre adds to the already strong capabilities in Singapore, and can bring even greater value to businesses in Singapore and across Asia. Congratulations to FM Global on the opening of the FM Global Centre, and I wish you every success. Thank you.

Direct financing via capital markets is growing in importance, even though banks are still the most important source of financing in the euro area. Such changes in the financial landscape make the allocation of funds more efficient and are hence most welcome. At the same time, however, they alter the transmission mechanism of monetary policy, and insofar as this alteration is difficult to measure, add uncertainty to monetary policy decisions. Apart from the financial environment, the real economy in the euro area is also currently subject to significant change. Monetary Union has enhanced competition between economic agents in the participating countries. Price transparency between the countries has increased. Both consumers and companies are becoming increasingly more aware of price differences and are reacting accordingly. Greater price differences will be harder to justify and maintain, even though differences in the tax systems and in product specifications will continue to exert an influence on price setting. Fiscal policy may be affected, both by increased competition between countries and by the general need to foster employment and growth in order to comply with the challenges of ageing populations. These realities have triggered tax cuts and the start of more fundamental benefit reforms. However, these efforts must be accompanied by a structural reduction in expenditure in order to support price stability, make further progress in fiscal consolidation and boost economic growth. Overall, the increase in competition, less rigidity and a more flexible structure of the economy should lead to an increase in the sustainable rate of economic growth.