are lacking with regard to striking the right balances in monetary policy. i have discussed some of these. one is the assessment of productivity growth and the potential growth in the next few years. there are still no signs that we will see a productivity growth such as in the usa. however, we must carefully follow and analyse the development in the area where monetary policy is formulated. the risk of incorrect assessments having more serious consequences should, however, be small as changes in this area do not take place overnight. another component of the risk scenario is how wage formation and the labour market will function in coming years. negotiations are taking place in an economy undergoing strong growth at the same time, as there are occupations with a shortage of labour where pay has fallen behind. however, changes have taken place in the swedish labour market that permit some optimism about developments. above all, this concerns the support for and understanding of the inflation target and the low inflation expectations that have been established. changes in the forms of wage formation, which have been carried out or are planned work in a positive direction. finally, globalisation and competition can have increased businesses ’ cost consciousness. this may lead to a greater opposition to wage increases and also that businesses in their drive to keep costs down endeavour to introduce forms of employment that increase flexibility in the labour market. in conclusion, it is important for the riksbank as always to carefully monitor what is taking place in the economy when conducting monetary policy. gross fixed investment as a per cent of gdp gross fixed investment grossfixed investment, excl residential kalla : scb savings, investments ( net ) and current account as a per cent of national disposable income 1950 - 96 - 5 d : \ ex \ d - sv \ data \ datany nettosparande ( net savings ) n ettoinvesteringar ( net investment ) ( current account ) source : national accounts. note : from 1986 reinvested capital gains is included. source : lennart berg bytesbalans labour productivity growth sweden 4, 5 3, 5 usa usa 2, 5 sweden usa 1, 5 sweden 0, 5 60 - 74 75 - 94 95 - 99

##a ’ s focus has shifted to implementation. since assuming this responsibility in early august, i have been struck by the volume of activity and the energy with which pra staff are working to ensure that we – and most of you – hit the 1 / 1 / 16 deadline. our supervisors and actuaries, supported by policy analysts and others across the bank, are working hard to ensure that the uk industry meets these statutory deadlines and that we can provide you with all of the information you need in advance. the challenge of solvency ii for the industry should not be underestimated. as my colleagues will explain during the sessions today ; there is a great deal of work to do, time is short and the responsibility for you to be ready lies squarely with each of your individual regulated firms. i am conscious that there have been claims or rumours in some quarters that the bank is looking to take the opportunity of solvency ii to raise capital levels across the board. let me assure you that there is no such intention on the bank ’ s part ; nor are we looking to subvert in any way what is legally a maximum - harmonising directive. as always, we will be proportionate and pragmatic in our approach to implementation. i want to say definitively, and i am sure my colleagues will repeat this message throughout today : bis central bankers ’ speeches we are not “ gold plating ” the directive and we are not front - running the requirements of solvency ii. what is different about the uk, compared with most of europe, is that we have successfully operated a pillar two regime, with a strong modelling component, for the last nine years. we believe this benefitted policyholders and left the industry in good shape to weather the recent financial storms of the great recession. those are also desired outcomes that lie at the heart of the solvency ii directive and so i want to leave you in no doubt that we will implement the directive in a full and robust manner so as to continue to deliver the level of financial resilience consistent with the safety and soundness of firms and policy - holder protection. another difference in the uk is that we are anticipating more internal model applications than any other eu country, which is not unexpected given the scale and diversity of the uk industry. this creates an unprecedented challenge for the industry, and for the bank, in ensuring that models are of a high quality and that they meet the solvency ii requirements. it also creates some logistical challenges which you need