is the appropriate time to create fiscal buffers that could act as a cushion against any future need. conclusion the single currency has proved to be a challenge to various countries in the euro area. instead of exploiting the opportunities offered by the single market, some member states have been impacted by the fixed nominal exchange rate and their inability to correct macroeconomic imbalances through internal adjustment. this made them more vulnerable in times of crisis. one fundamental lesson to be learnt is that, with a fixed exchange rate, it is of utmost importance that the rest of the economy is as flexible as possible to correct imbalances. in this regard, the maltese economy has been nimble enough to adapt to the new realities of the single currency. yet, the challenges that lie ahead will require further structural changes that increase flexibility and strengthen economic fundamentals. to this end, government has identified health and education as new sectors with growth potential that could be transformed into exportable services. malta has the ability to develop a regional cluster in these areas, attracting students and patients from the region and beyond. this year we have seen a significant correction in the exchange rate, which is expected to exert a positive influence on economic growth in the year ahead. there are other major elements that add to malta ’ s positive outlook. in addition to being an efficient and profitable international business location, malta is a meeting point of cultures and languages at the centre of the mediterranean. there is, therefore, potential for further development of economic activities that exploit our location, our strengths in doing business from malta that add value to current activities, such as, for example, developing further cultural niches in the tourism sector so as to maintain a vibrant and evolving economy. thank you bis central bankers ’ speeches

, with strong growth in mortgage loans. the snb has repeatedly expressed its concern over these developments. prolonged low - interest phases also present the insurance industry and pension funds with considerable challenges. it goes without saying that central banks continually evaluate and reassess the effects and risks of monetary policy in the light of the most recent data. this applies in normal times and even more so in exceptional situations such as we have experienced over the past few years. the exceptional nature of the situation can be seen not least from the long duration of interest rates close to zero. apart from the case of japan in the 1990s, there has been no other example of this in monetary history. there is certainly no precedent for the extent to which unconventional instruments have been used. central bank independence and mandate ladies and gentlemen, i would now like to turn to questions relating to the independence and mandate of central banks. during the crisis, central banks intervened flexibly and on a huge scale, and with success. the downside of this success is that politicians and the general public have higher expectations of central banks when it comes to crisis and economic management. this carries the risk that monetary policy will be overburdened in the long term. in addition, the unconventional measures of the past few years have blurred the boundaries between monetary and fiscal policy in places. this is not without its problems as, ultimately, the central banks have no political authority to make fiscal policy decisions. in its recent annual report, the bank for international settlements issued a stark warning about the political economy risks of unconventional monetary policy. risks of this nature mainly relate to the potential long - term impact on central bank independence. these warnings should be taken seriously. as you probably recall, in the 1990s, following the painful inflation experiences of previous decades, a global consensus developed that monetary policy should focus primarily on maintaining price stability over the medium term. in addition, those central banks that were not yet independent were given independence, while their duty of accountability was extended. this consensus with regard to the mandate and constitution of central banks led to a long period of low inflation for the global economy, and at the same time demonstrated that a focus on price stability did not result in greater cyclical fluctuations, as had been feared by some. on the contrary : the low inflation rates were accompanied by a very stable real economy, by historical standards. the focus on price stability remains essential, even against the background of the experiences of the financial and economic crisis. central banks could not have implemented cf