refinancing operations in the first quarter of 2010, we decided to carry out the last six - month longer - term refinancing operation on 31 march 2010. this operation will be carried out using a full allotment fixed rate tender procedure, as will the regular monthly three - month longer - term refinancing operations already announced for the first quarter of 2010. further operational details on these decisions can be found in a press release that will be posted on our website after this press conference. the improved conditions in financial markets have indicated that not all our liquidity measures are needed to the same extent as in the past. with these decisions, the eurosystem continues to provide liquidity support to the banking system of the euro area for an extended period at very favourable conditions and to facilitate the provision of credit to the euro area economy. let me now explain our assessment in greater detail, starting with the economic analysis. economic activity in the euro area improved further in the third quarter of 2009, with real gdp growth returning to positive territory following five quarters of contraction. according to eurostat ’ s first estimate, real gdp increased by 0. 4 % quarter on quarter. available survey data suggest that the recovery is continuing during the fourth quarter of 2009. at present, the euro area is benefiting from the inventory cycle and a recovery in exports, as well as from the significant macroeconomic stimulus under way and the measures adopted to restore the functioning of the financial system. however, a number of the supporting factors are of a temporary nature and activity is likely to be affected for some time to come by the ongoing process of balance sheet adjustment in the financial and the non - financial sector, both inside and outside the euro area. for this reason, the euro area economy is expected to grow only at a moderate pace in 2010, and the recovery process is likely to be uneven. eurosystem staff project annual real gdp growth of between – 4. 1 % and – 3. 9 % in 2009, between + 0. 1 % and + 1. 5 % in 2010, and between + 0. 2 % and + 2. 2 % in 2011. the range for 2010 has been revised upwards compared with the september 2009 ecb staff macroeconomic projections. forecasts by international organisations are broadly in line with the december 2009 eurosystem staff projections. the governing council continues to view the risks to this outlook as broadly balanced. on the upside, there may be stronger than anticipated effects stemming from

come. in order to support sustainable growth and employment, labour market flexibility and more effective incentives to work will be needed. furthermore, policies that enhance competition and innovation are also urgently needed to speed up restructuring and investment and to create new business opportunities. an appropriate restructuring of the banking sector should also play an important role. sound balance sheets, effective risk management, and transparent as well as robust business models are key to strengthening banks ’ resilience to shocks, thereby laying the foundations for sustainable economic growth and financial stability. we are now at your disposal for questions.