of banks strengthened where needed. however, considerable progress has been made since last summer in improving the funding situation of banks, in strengthening the domestic deposit base in stressed countries and in reducing reliance on the eurosystem as reflected in repayments of the three - year ltros. further decisive steps for establishing a banking union will help to accomplish this objective. in particular, in the light of recent experience, we must emphasise that the future single supervisory mechanism and a single resolution mechanism are crucial elements for moving towards re - integrating the banking system and therefore require swift implementation. to sum up, taking into account today ’ s decision, the economic analysis indicates that price developments should remain in line with price stability over the medium term. a cross - check with the signals from the monetary analysis confirms this picture. as regards fiscal policies, euro area countries should build on their efforts to reduce government budget deficits and continue to implement structural reforms, thereby mutually reinforcing fiscal sustainability and economic growth. fiscal policy strategies need to be complemented by growth - enhancing structural reforms. such reforms should be ambitious and broad - ranging, encompassing product markets, including network industries, labour markets and the modernisation of public administration. to support employment, wagesetting should become more flexible and better aligned with productivity. these reforms will help countries in their efforts to regain competitiveness, set the foundations for sustainable growth and support the return of macroeconomic confidence. we are now at your disposal for questions. bis central bankers ’ speeches

mario draghi : ecb press conference – introductory statement introductory statement by mr mario draghi, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 4 april 2013. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. we will now report on the outcome of today ’ s meeting of the governing council. based on our regular economic and monetary analyses, we decided to keep the key ecb interest rates unchanged. hicp inflation rates have declined further, as anticipated, and price developments over the medium term should remain contained. monetary and loan dynamics remain subdued. inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2 % over the medium term. at the same time, weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half of this year, subject to downside risks. against this overall background our monetary policy stance will remain accommodative for as long as needed. in the coming weeks, we will monitor very closely all incoming information on economic and monetary developments and assess any impact on the outlook for price stability. it is essential for governments to intensify the implementation of structural reforms at national level and to strengthen euro area governance, including the implementation of the banking union. they should also build on progress made in fiscal consolidation and proceed with financial sector restructuring. we are also closely monitoring money market conditions and their potential impact on our monetary policy stance and its transmission to the economy. as said on previous occasions, we will continue with fixed rate tender procedures with full allotment for as long as necessary. let me now explain our assessment in greater detail, starting with the economic analysis. the outcome for real gdp in the fourth quarter of 2012 was weak, with eurostat ’ s second estimate indicating a contraction of 0. 6 % quarter on quarter. the decline was largely due to a fall in domestic demand but also reflected a drop in exports. recent data and indicators confirm that the economic weakness extended into the early part of the year. looking forward, euro area export growth should benefit from a recovery in global demand and our monetary policy stance should contribute to support domestic demand. furthermore, the improvements in financial markets seen since last summer should work their way through to the real economy, notwithstanding recent uncertainties. together