in order to return to sound fiscal positions are credible, respecting fully the provisions of the stability and growth pact. this is essential to maintain the public's trust in the sustainability of public finances, which is important both for the economy to recover and for supporting long - term growth. countries subject to the excessive deficit procedure need to comply strictly with the ecofin council recommendations for correcting their deficits. many countries will need to specify further credible consolidation measures for 2010 and beyond. full and consistent implementation of the eu's legal provisions for sound fiscal policies is a prerequisite for the maintenance of their credibility as one of the pillars of the institutional framework of economic and monetary union. turning to structural reforms, the governing council welcomes the commitment of the spring european council to make full use of the renewed lisbon strategy for growth and jobs in the current situation. the updated recommendations for the euro area countries call for an accelerated implementation of reforms to support the economy, facilitate necessary adjustments and ensure a high level of growth potential. it remains essential that government support measures do not distort competition or delay necessary structural adjustment processes and that governments remain firmly committed to avoiding protectionism. we are now at your disposal for questions.

medium term. developments within m3 clearly reflect market participants'specific investment responses to the intensification of the financial turmoil, but increasingly also the impact of the past reduction in the key ecb interest rates. as this reduction has narrowed the gaps between the interest rates paid on the different categories of short - term deposits, it has fostered shifts in the allocation of funds. for example, the demand for overnight deposits further strengthened in february and contributed to the rise in the annual growth rate of m1 to 6. 3 %, while the demand for short - term time deposits weakened considerably. the flow of mfi loans to non - financial corporations and households has remained very subdued. the slightly negative flow of lending to non - financial corporations in february reflects a decline in the outstanding amount of loans with a shorter maturity, while the net flow in loans with longer maturities remained positive. the decline in short - term lending may be indicative of a reduction in loan demand related to the weakening of economic activity. however, supply effects have probably also affected loan developments. in this respect, developments over the past few months may in part reflect ongoing efforts of banks as well as the corporate and household sector to reduce the highly leveraged positions built up in past years. to sum up, today's decision takes into account the expectation that price pressures will remain subdued, reflecting the substantial past fall in commodity prices and the marked weakening of economic activity in the euro area and globally. the latest economic data and survey information confirm that the world economy, including the euro area, is undergoing a severe downturn. both global and euro area demand are likely to remain very weak over 2009, before gradually recovering in the course of 2010. available indicators of inflation expectations over the medium to longer term remain firmly anchored in line with the governing council's aim of keeping inflation rates at levels below, but close to, 2 % over the medium term. a cross - check with the outcome of the monetary analysis confirms that inflationary pressure has been diminishing. after today's decision we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households. the governing council will continue to ensure a firm anchoring of medium - term inflation expectations. such anchoring is indispensable to supporting sustainable growth and employment and contributes to financial stability. accordingly, we will continue to monitor very closely all developments over the period ahead. regarding fiscal policies, it is necessary that countries'commitments to a path of consolidation