. i would like to end my address by commenting on these two points in particular : sustainability of the public finances and stability of the financial system. sustainability of the public finances necessarily involves improving the primary structural balance, as i have mentioned before. the sectoral spending programmes will have to be resized, to ensure that portugal ’ s public spending level is compatible with the productive capacity in the economy, demographic trends and socially acceptable tax burden. in parallel, the institutional framework for the public finances will have to be changed dramatically, to ensure that primary balance adjustments are not reversed. budget rules and procedures are required so that ( i ) budgetary goals are compatible with the medium and long - term sustainability of the public finances in a context of stable taxes ; and ( ii ) budgets are executed without major slippages. deep reflection is needed on the organisational model and management of the public sector, to find solutions offering efficiency gains in producing public goods and services, thereby minimising the impact on society of the reduction of the resources allocated to the main spending areas. i do not want to take up much more of your time. however, as part of the debate about the conditions for sustained growth in the portuguese economy, and given that today we celebrate world savings day, i have to say a few words on the importance of financial stability and the role performed by banco de portugal. 3. financial stability and the role of banco de portugal safeguarding financial stability is a key aspect of the adjustment programme alongside lasting consolidation of the public accounts and increasing the economy ’ s growth potential. these three aspects are inseparable and have to be seen as linked. we have seen how sustainability of the public accounts is a necessary condition for sustained growth and how this is crucial for reversing unsustainable public debt trajectories. bis central bankers ’ speeches the same kind of “ dialectic relationship ” exists between financial stability and sustainability of the public finances and between financial stability and sustained growth. as the case of ireland well illustrates, problems in the financial system require the intervention of the public sector, jeopardising the sustainability of public debt. conversely, unsustainable public indebtedness affects the banking system ’ s financing capacity, jeopardising financial stability. an environment of financial stability reduces uncertainty, protects investors, contributes to lower, less volatile interest rates and ensures stable financing flows to the economy. these factors are decisive for promoting investment and an efficient allocation of capital, and moreover,

with price stability. economic actors are confident that the snb will also be able to keep inflation well under control over the long term. in view of the stable inflation expectations, it is not surprising that long - term rates have changed little since the beginning of the year. the yield on ten - year confederation bonds has fluctuated between – 0. 1 % and + 0. 2 % since the start of 2018. andrea maechler will examine exchange rate and interest rate developments in more detail later. monetary policy outlook let me summarise the key points with regard to monetary policy. we anticipate that our economy has expanded by around 2. 5 % this year. in line with a gradual slowdown in the global economy and high capacity utilisation in switzerland, domestic growth is likely to stabilise at around 1. 5 % next year. the inflation forecast for this year is unchanged ; for 2019 and 2020 it is somewhat below our forecast last quarter. the swiss franc is still highly valued. given the slightly muted inflation outlook and the continued fragility in the exchange rate situation, our expansionary monetary policy remains appropriate. with the negative interest rate and our willingness to intervene in the foreign exchange market as necessary, we support economic activity and ensure price stability. ladies and gentlemen, thank you for your attention. it is now my pleasure to give the floor to fritz zurbrugg. page 4 / 4