My own experience from other, similar discussions in the central bank sphere is that solid, wellfounded arguments weigh heavily and, in practice, play a more important role than the size of the country and the possibility to press a voting button. What I know about how the ECB Governing Council works in monetary policy discussions supports this viewpoint. For my own part, I believe that too much attention has been paid to the voting modalities. Other factors can be particularly important in ensuring effective monetary policy. Personally, I would emphasise the internal discussion processes, which I believe to be vital. These should be of high quality and transparent, and provide scope for different decision-makers to become involved on equal terms. Clarity and transparency is also important externally, ensuring more precise and meaningful criticism, which in turn can improve and speed up internal thought processes. Also in these respects, there are a number of similarities between the Riksbank and the ECB. Both institutions publish assessments of inflation prospects, hold press conferences in connection with their interest rate decisions and justify and explain their formulation of policy before various political bodies. In addition, a gradual evolution of intellectual thought takes place within both the Riksbank and the ECB. It is likely that this will bring us closer together. The most significant differences, in my opinion, relate to the clarity of the assessments, where the Riksbank and other countries that work with explicit figurebased targets and publish inflation reports are clearer.

Other services were deeply impacted by the shutdown of non-essential services, and other sectors – such as manufacturing – were adversely affected by disruptions to the global supply chain. Although GDP still posted positive growth in the first quarter, the contraction in the second was broadly at par with that registered in the euro area. Incoming data suggest that economic activity began to recover and sentiment improved in the third quarter as the most disruptive containment measures were lifted, Page | 1 Document Classification: Public  but rising positive cases and newly introduced restrictions will likely weigh on activity in the fourth quarter, so that confidence among consumers and business is likely to take longer to recover than previously anticipated. During these uncertain times, projections have become increasingly difficult, as economic activity is intrinsically linked to the evolution of the pandemic, its impact on confidence of consumers and businesses, and very importantly to policy support and prospects of a medical solution. Unlike the great financial crisis of 2008-2009, the fiscal response has been prompt and significant, aided by the fiscal space accumulated in recent years. Liquidity measures such as tax deferrals, moratoria on loan repayments and the Malta Development Bank COVID-19 Guarantee Scheme, have all been fundamental in limiting bankruptcies by providing liquidity support. In addition, the Wage Supplement Scheme has been very successful in avoiding higher unemployment. Additionally, the voucher scheme has been a welcome boost to support domestic consumption, and provided some relief to the retail and hospitality sector during summer.