is also proposed in the draft resolution to continue to improve the ecb ’ s analytical infrastructure. transparency i would also like to welcome the committee ’ s recognition that making the minutes of the ecb governing council ’ s meetings available to the public would not be advisable. such a measure would draw attention to individual positions when in a euro area of 15 – and very soon 16 – countries, what counts is the position of the collegial decision maker, the governing council. it could also lead to pressures on governing council members to abandon their necessarily euro area perspective when taking monetary policy decisions. as already emphasised on previous occasions, i see the introductory statement i present on behalf of the governing council at the monthly press conference as an equivalent to what other central banks call “ summary minutes ”. together with the ensuing q & a session, the introductory statement provides in real time a comprehensive overview, on the part of the governing council, of the current monetary policy stance. this communication instrument has served us very well in guiding financial market expectations. fiscal policies as regards fiscal policies, the ecb shares the view expressed in the draft resolution that all member states must fully respect the stability and growth pact. however, after the decline of the past four years, a renewed increase in the euro area aggregate fiscal deficit ratio is projected for 2008. there is a clear risk that some countries will not comply with the provisions of the preventive arm of the stability and growth pact. achieving sound and sustainable budgetary positions and on this basis allowing the free operation of automatic stabilisers is the best contribution fiscal policy can make to macroeconomic stability. economic differentials in the euro area and structural policies the draft resolution also refers to the risks posed by economic differentials across euro area countries, which to some extent reflect structural rigidities and / or inappropriate national policies. it goes without saying that economic divergences across euro area countries cannot be addressed by monetary policy. in order to avoid a protracted period of either low growth and high unemployment or overheating, as a country responds to asymmetric shocks, reforms to enhance the resilience to such shocks should be undertaken at the national level. these include well designed structural reforms to enhance competition, increase productivity and foster labour market flexibility. greater flexibility in euro area labour markets and wages would reduce adjustment costs and inflation pressures in the event of adverse supply shocks and would augment the economy ’ s resilience, thus limiting employment losses and facilitating the conduct of the stability

to price stability. over recent quarters, these risks appear to have become manifest as inflation has trended upwards. against this background, the continued strength of monetary dynamics represents an important signal of the risks to price stability over the medium term that we have been addressing through our actions since end - 2005. moreover, a thorough assessment of available data suggests that the ongoing financial market correction has, as yet, not significantly affected the availability of bank credit. to contain prevailing upside risks to price stability over the medium term the governing council further adjusted the monetary policy stance in march and june 2007. after a period of unusually high uncertainty in the context of the financial market correction, in july 2008 the governing council has brought the minimum bid rate in the eurosystem ’ s main refinancing operations to 4. 25 %. this action underlines the governing council ’ s strong determination to prevent second - round effects and maintain longer - term inflation expectations firmly anchored in line with price stability. this is the contribution of the ecb ’ s monetary policy to preserving purchasing power over the medium term and supporting sustainable growth and employment in the euro area. following last week ’ s decision to raise rates, in the governing council ’ s current assessment the monetary policy stance will contribute to achieving price stability over the medium term. we will continue to monitor very closely all developments over the period ahead. other issues raised in the european parliament ’ s draft resolution on the ecb ’ s annual report 2007 mister president, honourable members of the european parliament, in your draft resolution you raise a large number of issues of relevance to the ecb. i would like to assure you that we will consider your remarks and requests with great care and report back to you accordingly. i will now briefly elaborate on some of these points. monetary policy strategy i would like to start by welcoming the positive assessment made by the economic and monetary affairs committee of the ecb ’ s monetary policy strategy. our two - pillar framework ensures that all information relevant for the assessment of risks to price stability is taken into account in a consistent and systematic manner when taking monetary policy decisions. in particular, the monetary analysis guarantees that the ecb ’ s monetary policy is oriented to the medium to longer term. given the close link between monetary developments and evolving imbalances in credit and asset markets, the monetary analysis has proven a particularly valuable asset in times of financial distress. in 2007 the governing council has launched within the eurosystem a research agenda to enhance further its monetary analysis, as