overall macroeconomic stability, including sustainable price stability. given the limited room for manoeuvre for monetary policy under the currency board arrangement, it is imperative that other policy areas provide the economy with the wherewithal to cope with country - specific shocks and to avoid the recurrence of macroeconomic imbalances. let me emphasise in particular the role of fiscal policy, which is one of the most important macroeconomic management tools at the disposal of policy - makers. since the accession of bulgaria to the european union and the european system of central banks in 2007, bulgarian citizens have already become more familiar with the euro banknotes and coins. the objective of the euro exhibition is to improve the general public ’ s awareness of the euro banknotes and coins and their security features, and explain how to distinguish a genuine euro banknote from a counterfeit. bis central bankers ’ speeches the euro exhibition gives visitors the chance to explore subjects ranging from the history of money to the production of banknotes. as you walk around the exhibition, you will no doubt recognise the images of bridges that feature on the back of the euro banknotes. they symbolise the communication between the people of europe and between europe and the rest of the world. the bridges also represent the connection between the past and the present, and symbolise a common european future. the diversity of europe is reflected on the national sides of the euro coins, which depict national icons and symbols representing the heritage and culture of each euro area country. the exhibition also has plenty to interest the younger generation. in the kids ’ corner, children can play educational computer games, learn more about the features of euro banknotes from interactive displays and follow the story of anna and alex as they catch counterfeiters. many other interactive components of the euro exhibition will appeal to both children and adults alike. the best way to learn how to check the authenticity of a euro banknote is to explore the security features showcases. and why not investigate the showcase displaying the different steps in banknote production or try to lift the weight of a gold bar? sofia is the 11th city to play host to the euro exhibition. previously the euro exhibition has travelled to frankfurt, bratislava, barcelona, rome, berlin, luxembourg, warsaw, tallinn, bucharest and paris. several activities are planned in 2012 to mark the tenth anniversary of the introduction of the euro banknotes and coins and i would encourage you to keep checking the “ euro pages ” of the ecb ’ s website for news on the

, mainly owing to energy and commodity prices. this has not so far affected our assessment that price developments will remain in line with price stability over the policy - relevant horizon. at the same time, very close monitoring is warranted. recent economic data confirm the positive underlying momentum of economic activity in the euro area, while uncertainty remains elevated. a cross - check of the outcome of our economic analysis with that of the monetary analysis indicates that bis central bankers ’ speeches inflationary pressures over the medium to long term should remain contained. inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2 % over the medium term. the continued firm anchoring of inflation expectations is of the essence. turning to fiscal policies, it is now essential that all governments fully implement their fiscal consolidation plans in 2011. where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability. beyond 2011, countries need to specify concrete policy measures in their multi - year adjustment programmes so as to underpin the credibility of their fiscal consolidation targets. experience shows that expenditure restraint is an important step towards achieving and maintaining fiscal soundness, notably when enshrined in binding domestic policy rules. such a commitment helps to strengthen confidence in the sustainability of public finances, reduces interest rate risk premia and improves the conditions for sound and sustainable growth. the implementation of credible policies is crucial in view of ongoing financial market pressures. substantial and far - reaching structural reforms, complementing fiscal adjustment, should be urgently implemented to improve the prospects for higher sustainable growth and employment. major reforms are particularly necessary in those countries that have experienced a loss of competitiveness in the past or that are suffering from high fiscal and external deficits. increased product market competition and labour market flexibility would further support the necessary adjustment processes in the economy. all these structural reforms should be supported by the necessary improvements in the structure of the banking sector. sound balance sheets, effective risk management and transparent, robust business models remain key to strengthening banks ’ resilience to shocks and to ensuring adequate access to finance, thereby laying the foundations for sustainable growth and financial stability. we are now at your disposal for questions. bis central bankers ’ speeches