than quadrupling of the average unemployment level. also in the netherlands, rapid increases in government debt were attended by increasing unemployment levels. these recent experiences show that accommodative fiscal policies are not a guarantee for reducing unemployment. j. m. buchanan, “ the deficit and american democracy, center for study of public choice ”, george mason university, 1984, mimeograph, pp. 8 - 9. let me now briefly discuss the second issue – what are the elements of the pact for stability and growth? the pact for stability and growth will take the form of two regulations, and a political resolution from the european council. the resulting regulatory framework represents a judicious balance between prevention – via the strengthening of the surveillance of budgetary policies - and deterrence – via the establishment of a dissuasive set of rules. the pact will oblige member states ( or the “ ins ” ) to submit stability programmes. in these programmes, medium - term budgetary targets will be stipulated, which should be set close to balance or even at a small surplus. non - euro member states ( or the “ pre - ins ” ) will submit convergence programmes. furthermore, the pact will include a sanction mechanism that will be used when countries fail to meet the 3 % reference value. if the council of ministers judges that a member state has an excessive deficit, sanctions would, as a rule, be imposed in the calendar year following the year in which the excessive deficit was recorded or identified. the sanction would consist of a non - interest - bearing deposit between 0. 2 % and 0. 5 % of gdp. in the case of the netherlands, this would imply a maximum fine of somewhat over 3 billion guilders. the third element of the pact, the european council resolution, will reflect the political commitment to a strict and timely application of all the provisions of the pact. thus, the resolution will provide firm political guidance to the parties who will implement the pact for stability and growth. both regulations, together with the resolution, constitute an important framework for stability. if the countries adhere to the provisions of the pact, they will observe a safety margin in respect of the fiscal deficit to make sure that, even in times of cyclical adversity, the deficit will not exceed the 3 % - reference value of the maastricht treaty. the stability pact aims at ensuring that countries, once they have joined emu, will continue to abide by the rules for sound

whose common characteristic is the addressing of the reality in the last couple of years. they mainly scrutinise the economic, financial and social effects of the pandemic and the resistance of market and financial institutions to this shock. thesis on the forward guidance of financial market, focusing on the digital currency effects ; exploitation of large detailed databases for evaluating the behaviour of financial market segments which, which have been out of the research attention, are important to the country development ; in addition to the study of other important issues to albania, like fiscal policy, etc. the addressed themes and their findings are based on the application of contemporary research methodologies and make use of granular statistical information, which is both thoughtful and structured one. above all, this information is employed rigorously pursuant to the academic standards and requirements to research and argue through theoretical and empirical hypothesis on the economic and financial phenomena and events. for this reason, the commission found difficult in making a selection as all topics were coherent, interesting and properly addressed. nevertheless, we succeeded to identify carefully those minor variations and distinguished nuances which make the difference to the winning theses amid all the presented works. eventually, we have come to a decision on the “ governor ’ s award for the best diploma theses ” for 2021. though, i would like together with the winners to thank and congratulate all the participants in this contest for their engagement, ideas, the applied methods and findings based on the appropriate methodologies. i wish this passion and devotion is part of your commitment as you advance in your careers. let us now present the winning contestants. thank you and happy holidays! 2 / 2 bis central bankers'speeches