Moreover, it is essential that fiscal policy meet the obligations of the Stability and Growth Pact. Continuing progress in fiscal consolidation should be achieved by containing public spending growth, allowing for both a reduction in remaining budget deficits and an alleviation of the fiscal burden on corporations and private households. Concluding remarks Overall, it is fair to say that the first two years of the euro have been a success. At the start of Monetary Union, the economic environment in the euro area was still in the aftermath of the Asian and Russian crises, rendering considerable uncertainty to world economic development. At present, the economic situation in the euro area is much more favourable, even though uncertainties from the external environment have increased recently. Admittedly, consumer price inflation currently stands above 2%. However, this development is mainly due to direct effects stemming from the external oil price shock, which cannot be prevented by monetary policy. It is very positive for the credibility of the ECB that under these circumstances inflation expectations have remained contained, as reflected, for example, in financial market indicators and survey data. This shows that the ECB's stability orientation is properly understood by the markets and by the public at large. I am also optimistic about the future. The maintenance of price stability over the medium term will contribute significantly to the achievement of sustainable economic growth and to the economic welfare of the population in the euro area.

For example, in the non-financial sector, the Accounting and Corporate Regulatory Authority will implement an enhanced regulatory framework for corporate service providers, to minimise the risks of shell companies being set up for illicit purposes. This is expected to take effect from the last quarter of 2014. As another example, pawnbrokers are identified as a potential channel for money laundering. While pawnbrokers are already subject to basic AML/CFT obligations, further requirements will be introduced when changes to our pawnbroking legislation are put in place at the end of this year. 8 For the financial sector, the controls in place are assessed during the NRA exercise to be generally strong, which is not surprising given that the sector has built up considerable AML/CFT expertise and processes over many years. Nonetheless, there are newer areas to be considered. For instance, we have announced in March that we will regulate virtual currency intermediaries for AML/CFT purposes. Our approach is a targeted one, recognising that virtual currency intermediaries can facilitate anonymous cross border money transfers, not unlike the activities of money-changing and remittance businesses. They will thus be subject to similar AML/CFT requirements, and further details will be released in due course. Also, for remittance agents and money-changers themselves, MAS has stepped up supervision, inspection and enforcement efforts, and is also engaging the licensees on their ML/TF risks. 9 Banks are critical gatekeepers against illicit fund flows. This is why MAS must continue to take proactive measures to maintain a robust and effective regime.