, while their implementation could be improved, in particular as regards the preventive arm of the pact. finally, let me support the calls expressed in the report of the high level group chaired by wim kok to renew the impetus in the lisbon process and to sharpen its focus. in this context, we restate our strong support for all efforts on the part of governments, parliaments and social partners implementing the reform agenda and focusing on those reforms that will support employment growth, foster investment and stimulate innovation and productivity. progress in this direction will not only enhance the underlying growth potential of the euro area economy over the medium term but will also help to bolster consumer and business confidence over a shorter horizon. we are now at your disposal for questions.

european central bank : press conference - introductory statement introductory statement by mr jean - claude trichet, president of the european central bank, and mr lucas papademos, vice president of the european central bank, frankfurt, 2 december 2004. * * * ladies and gentlemen, the vice - president and i will now report on the outcome of today ’ s meeting of the governing council of the ecb. all in all, the short - term outlook for inflation remains worrisome, but our assessment of price developments over the medium term is unchanged. at the current juncture oil price developments are having a sizeable impact on consumer prices in the euro area, while there is no significant evidence that stronger underlying domestic inflationary pressures are building up. accordingly, we have left the key ecb interest rates unchanged at their historically low levels. at the same time, we recognise the existence of upside risks to price stability over the medium term. continued vigilance is of the essence with regard to those risks. i shall now explain our assessment in more detail, turning first to the economic analysis. after the positive developments in the first half of 2004, economic growth has moderated in the second half. in the third quarter of the year, real gdp growth is estimated to have been only 0. 3 % quarter on quarter, after 0. 7 % and 0. 5 % in the previous two quarters. according to eurostat, the contribution of net exports turned negative, reflecting in particular high import growth, and private consumption was subdued, probably dampened by higher oil prices. at the same time, investment growth increased and inventories were built up. the available survey information for october and november points to ongoing growth in the fourth quarter, albeit at a more moderate pace than in the first half of this year. the conditions remain in place for economic growth to proceed. on the external side, while global growth is showing some signs of moderation, it nonetheless is expected to remain robust. euro area exports should continue to benefit from global demand conditions. on the domestic side, investment should be supported further by the very favourable financing conditions in the euro area, improved earnings and greater corporate efficiency gained through business restructuring. finally, scope exists for private consumption to strengthen, particularly if uncertainties surrounding the extent and pace of fiscal consolidation and structural reforms are reduced. accordingly, we expect a gradual recovery in euro area activity over the next two years, with somewhat more moderate growth rates due to the impact of oil prices. this is