##gences in economic developments are a normal feature. however, considerable imbalances have bis central bankers ’ speeches accumulated in the last decade in several euro area countries and they are now in the process of being corrected. as concerns the monetary policy stance of the ecb, it has to be focused on the euro area. our primary objective remains to maintain price stability over the medium term. this is the best contribution of monetary policy to fostering growth and job creation in the euro area. addressing divergences among individual euro area countries is the task of national governments. they must undertake determined policy actions to address major imbalances and vulnerabilities in the fiscal, financial and structural domains. we note that progress is being made in many countries, but several governments need to be more ambitious. ensuring sound fiscal balances, financial stability and competitiveness in all euro area countries is in our common interest. we are now at your disposal for questions. bis central bankers ’ speeches

. i understand that some observers in this country have concerns about the medium - term implications of this policy. so let me be clear : we always have a medium - term orientation. we are steadfastly committed to our mandate to maintain price stability. and the measures we have announced fully support this commitment. first of all, our actions are for the sole purpose of ensuring the proper transmission of monetary policy. they do not aim to finance governments, and nor would they if they were activated. our operations would only take place in the secondary market, which ensures that money would pass to investors holding sovereign bonds, not to governments. bis central bankers ’ speeches moreover, we have been explicit that our measures can be only successful if they are accompanied by reforms from governments that address deep - rooted issues. the governing council has made a strong commitment to such reforms a pre - requisite to be considered for our operations. this ensures that governments will continue to take essential measures. euro area citizens can be certain that we remain alert to any risk to price stability. we have always delivered price stability in the past – indeed, the average rate of inflation in germany since the launch of the euro has been the lowest since the 1950s. and we will continue to deliver price stability in the future. the credibility of our commitment is clear. indicators of inflation expectations show that citizens and financial markets expect inflation to remain low in line with our mandate. we take very seriously the trust that citizens put in us to meet their expectations. we will not let them down. building a bridge to the long term i have discussed the actions that the ecb has taken to ensure price stability and the positive early impact they are having. of course the current improvement in sentiment does not mean that everything is solved. the ecb ’ s actions can only build a bridge to the future. the project must be completed through decisive actions by governments – both individually and collectively – to address the underlying causes of our current challenges. this requires further efforts by governments to restore fiscal sustainability across the euro area. it requires deep structural reforms to achieve long - term competitiveness and growth. governments must remain firmly committed to their current reform efforts, and not seek to relax them as economic conditions start to improve. to secure long - term stability also requires a second level of actions. for citizens and investors to fully regain confidence in the euro area, they need to be convinced that its design flaws have been permanently fixed. a concerted effort from governments to complete our economic and