fourth quarter of 2012. output has thus declined for six consecutive quarters, with labour market conditions remaining very weak. the euro area economies were badly affected by the crisis ( first financial, then economic, then sovereign debt ), and the fiscal adjustment that became necessary to overcome it has had a negative impact on growth as well. ecb projections see a gradual recovery taking shape later this year. a number of elements support this view : • our accommodative monetary policy stance – which will remain so for as long as necessary – should contribute to underpinning this recovery ; • recent developments in economic sentiment survey data have shown some improvement from their low levels ; • looking ahead to later in the year and to 2014, euro area export growth should benefit from a recovery in global demand, while domestic demand should be bis central bankers ’ speeches supported by our accommodative monetary policy stance and by the recent real income gains due to lower oil prices and lower overall inflation. • furthermore, the significant improvements in financial markets seen since last summer boost confidence and generate wealth effects and should work their way through to the real economy, as should the progress made in fiscal consolidation. nevertheless, the governing council continues to see downside risks surrounding the economic outlook for the euro area. they include the possibility of weaker - than - expected domestic and global demand and the slow or insufficient implementation of structural reforms in euro area countries. overall, the june 2013 eurosystem staff macroeconomic projections for the euro area foresee annual real gdp declining by 0. 6 % in 2013 and increasing by 1. 1 % in 2014 thanks to three main drivers : export growth, accommodative monetary policy and low inflation. 2. how can we boost growth further in the euro area? a strong fiscal stimulus obviously appears unfeasible, given the necessity to rebalance public finances. i want to stress two things here : • the euro area has very rapidly and efficiently set to work to cure its fiscal weaknesses and can today boast some of the best results among the major developed economic regions : its public deficit has been reduced from 6. 3 % of gdp in 2009 to approximately 3 % today ; by the end of 2013, the euro area should show a positive primary balance ; • while the commitment to progressively achieve sustainable levels of public debt and deficit has to be achieved ; the measures need to be designed in such a way as to limit the negative side - effects on growth. for instance, efforts need to be focused

christian noyer : is the euro a success story? speech by mr christian noyer, governor of the bank of france, at the paris europlace international forum, tokyo, 29 november 2006. * * * it is a great pleasure for me to be here today and to have the opportunity to address such a distinguished audience. i want to talk to you about a success story : the euro. as you well know, there have been difficult times for european integration. the treaty creating a constitution for europe was not ratified last year and the future of political integration is fraught with uncertainties. also, much remains to be done, in terms of structural reform, if the european countries want to achieve the same level of long term growth as other developed economies. nevertheless, i feel very optimistic. and the reason for this optimism is the euro. the single currency has the potential to bring enormous benefits to european nations, which they can use to achieve a high degree of stability and prosperity. 1 ) what are those benefits? the first, and most obvious, is price stability. over the last five years, inflation has stayed broadly in line with the price stability objective set by the european central bank, i. e. inflation below but close to 2 % over the medium - term. gone are the days when european citizens had to worry about the purchasing power of their savings. this stability goes beyond the behaviour of prices. inflation expectations themselves have been remarkably stable, including during the recent period when oil prices jumped to levels no one could have expected only a year ago. this, by itself, illustrates the credibility achieved by the eurosystem, after only six years of existence. second, european households and companies are reaping the benefits of that credibility. long term interest rates stand at an historically low level, around 100 basis points below the level in the united states. so, even after the recent increases in short term rates, monetary and financial conditions remain extremely favourable for investment and growth. and indeed, we might be witnessing in europe the start of period of sustained and stable growth, at least if current projections and surveys prove to be right in the coming months. a third benefit of the euro is the boost it gives to financial integration in europe. in many segments, european financial markets have reached the depth and liquidity which, up to now, were the preserve of dollar markets. this stimulates productive investment, helps in restructuring ( as witnessed by the current wave of m & as ) and, more