to promote its transformation. there is certainly much to be done. but, to conclude on a positive note, i wanted to highlight the incredible pace at which initiatives are moving and changes are being introduced. let me give you two examples. first, the ngfs was created barely two years ago, but in this very short lifespan it has managed to publish two comprehensive reports, guidance for central banks ’ investments and, not least, its membership has surged from 8 to 51 members and 12 observers. the second example is rather obvious : just look at the composition and topics discussed on this panel today. they would have been quite unthinkable two years ago. thank you very much. 5 / 5

the european authorities involve a further reduction of fiscal imbalances in 2015 and 2016. in this respect, public deficit targets are set to 4. 2 % and 2. 8 % for 2015 and 2016, respectively. despite the additional efforts shown in the most recent budgetary information ( up to november 2015 ), the fulfilment of these targets is not without risks. to tackle these risks it will be important to ensure a strict implementation of the budget, both at the national and the regional levels and, if the need arises, to be ready to take the appropriate corrective measures within the framework of european union fiscal governance. but the challenges should not cloud the fiscal consolidation effort already made. this can be easily seen in the structural primary balance ’ s evolution, which turned around from a deficit of 5. 2 % of gdp in 2010 to an estimated surplus of 0. 6 % of gdp for 2015, according to the latest european commission figures. it is worth remembering that the bulk of this adjustment was made through a severe economic recession and under very stressed conditions in a fragmented eurozone financial market. several legal reforms to ensure budgetary discipline and sustainability have contributed to these developments. among those i would highlight the 2011 constitutional reform which enshrined the principles of budgetary discipline and fiscal sustainability the maximum legal status ; the 2012 law on budgetary stability and financial sustainability which sets these principles in spanish legislation ; and the creation in 2013 of a new independent fiscal responsibility authority. pension reform the recent pension reform aims at achieving financial sustainability of the social security system. it provides automatic mechanisms to absorb the challenges originated by the foreseen gradual ageing of the population and those from adverse developments in the economy. the most important change has been the establishment of a new mechanism for calculating the annual revaluation of pensions and the introduction of the so - called “ sustainability factor ” from 2019 onwards. the revaluation formula sets an annual pension increase based on the system ’ s budget constraints, replacing the previous mechanism in which this increase was linked to changes in the cpi. the sustainability factor is an automatic mechanism linking the initial retirement pensions to life expectancy. the spanish financial system now, i will briefly comment on several issues relating to the current situation of the spanish banking system. after experiencing a severe crisis, far - reaching reforms have been implemented in the spanish banking sector. these reforms can be summed up along three significant lines : an bis central bankers ’ speeches intense restructuring process in terms of size and capacity