operation of automatic stabilisers and contribute to the smooth functioning of economic and monetary union. structural reforms would not only be beneficial for employment and potential growth, but would also help to reduce inflationary pressures. enhancing competition, especially in services and network industries, is essential at this juncture to support price stability and enhance productivity growth. similarly, administered prices, indirect taxes, minimum wage legislation and public sector wage - setting should not add to inflationary pressures in the economy. we are now at your disposal for questions.

, a focus on newly - built houses might offer scope for improving data collection, since the construction companies that sell new houses is a smaller population than the wide spectrum of participants involved in the sales of existing houses. for all countries, digital improvements in recording house purchases may help to produce better oohpis in terms of reporting frequency and timeliness. the appropriate inclusion of owner - occupied housing costs in overall price indices is currently under discussion in the european statistical system. recognising that the full inclusion of owner - occupied housing in the hicp ( especially with the appropriate adjustment to isolate the consumption component ) is in any event a multi - year project, the governing council in its monetary policy assessments in the meantime takes into account inflation measures that include initial estimates of the cost of owner - occupied housing in its wider set of supplementary inflation indicators. climate change let me now turn to climate change. the ecb ’ s monetary policy strategy review fully recognised that climate change has profound implications for price stability through its impact on the structure and cyclical dynamics of the economy and the financial system. the carbon transition represents a major structural change for the global and european economies, with a significant economic transformation embedded in the commitments to significantly reduce carbon emissions by 2030 and attain net zero by 2050. [ 8 ] in principle, a sustained and predictable transition might be accomplished without significant macroeconomic volatility. however, both the physical risks and transition risks related to climate change may generate cyclical shocks that could require a monetary policy response. indeed, in recent years, it has already proven important to take into account in our macroeconomic assessments both severe weather events that disrupt global production ( such as floods and droughts around the world ) and the implications of the carbon transition for industries such as the automotive sector. in addition, there are tail risk scenarios in which severe physical shocks or disorderly transition dynamics could threaten financial stability. at an institutional level, climate change and the carbon transition also affect the value and the risk profile of the assets held on the eurosystem ’ s balance sheet. for these reasons, the governing council has committed to an ambitious action plan to further include climate change considerations in its monetary policy framework. [ 9 ] the main focus areas of the action plan are summarised in chart 3. first, the ecb will significantly enhance its analytical and macroeconomic modelling capacities and develop statistical indicators to foster the understanding of the macroeconomic impact of climate change and carbon transition policies. in particular, the ec