the first few days of june, also reflecting expectations that robust economic growth will continue in the euro area. notwithstanding the recent appreciation of the euro, the extent and duration of its previous depreciation will still exert upward pressure on consumer prices. against this background, the outlook for consumer price developments had become less favourable prior to today ’ s meeting. in april 2000 inflation - as measured by the harmonised index of consumer prices ( hicp ) - was 1. 9 %, following 2. 1 % in march. in the immediate future, the strong rise in oil prices in may 2000 is pointing to renewed short - term upward pressures. looking further ahead, all available forecasts for consumer price inflation for this year and next are now higher than they were at the end of 1999. current projections of a rate of inflation of around 2 % in 2000 and 2001 are clear warning signals. in conclusion, with today ’ s decisions the governing council has acted in a forward - looking manner in order to contribute to the maintenance of favourable conditions for a lasting, non - inflationary economic expansion. this should help other economic actors to rely firmly on the maintenance of price stability in the medium term. they are also called upon to contribute to price stability and growth by means of appropriate wage settlements compatible with employment growth, structural reform and fiscal consolidation. at the current juncture, they are especially encouraged to press ahead with structural reform, and governments are particularly urged to avoid a pro - cyclical loosening of fiscal policies. this is particularly important in those countries where there is a risk of overheating. let me now give the floor to the vice - president to say a few words about the decision to implement a variable rate tender procedure as from the main refinancing operation to be settled on 28 june 2000. the switch to variable rate tenders in the main refinancing operations is not intended as a further change in the monetary policy stance of the eurosystem. the new tender mechanism is a response to the severe overbidding which has developed in the context of the current fixed rate tender procedure. for the purpose of signalling the monetary policy stance, the minimum bid rate is designed to play the role performed, until now, by the rate in fixed rate tenders. this change does not in any way rule out the option that, in the future, the main refinancing operations of the eurosystem may be conducted in principle as fixed rate tenders. a press release setting out

important that the consolidation of national budgets and the strengthening of the growth potential have to be put in place in a more coordinated way. important decisions have already been taken. in late september the european parliament approved new legislation to tackle the shortcomings in the existing economic governance framework for co - ordinating fiscal and structural policies. the so - called “ six pack ” is a step in the right direction as the stability and growth pact will be strengthened ; imbalances and competitiveness will be monitored at an earlier stage. in addition to the “ six - pack ” the heads of state or government of the euro area agreed in march 2011 on a “ euro plus pact ” with the aim to strengthen policy coordination in the areas of competitiveness and convergence. a set of common indicators will be used to monitor the progress of labour - market reforms, reforms to wage - setting arrangements and reforms addressing the sustainability of pension, health care and social benefit systems. regarding the most urgent current challenges the heads of state and government of the euro area agreed on 26 october on a set of measures to restore confidence and address the current tensions in financial markets. these include a significant leveraging of the european financial stability facility ( efsf ) resources which shall increase the fund ’ s ability to extend loans, finance bank recapitalisations and conduct bond purchases in the primary and bis central bankers ’ speeches secondary markets. the crisis mechanism based in luxembourg had been set up to help countries with stressed liquidity positions. this support should allow them to return to a sustainable level of debt and regain competitiveness as soon as possible. as stated earlier, accelerated inflation is not a feasible option. therefore, monetary policy in the euro area must remain focussed on delivering price stability. by doing so, the ecb can also best contribute to financial stability, by including a firm anchoring of inflation expectations and supplying the financial system with the necessary liquidity. monetary policy, however, cannot replace governments which have to live up to their own responsibilities. but challenges remain beyond today ’ s institutional framework to safeguard the own life of a currency union within a common market to further proceed. in the medium to long run, we will need an institution that is solely responsible for the euro zone. a single monetary policy needs support from sound public finances and closer economic policy coordination with an agreed framework for national budgetary policies. this could be monitored ideally by an independent body be it a european commissioner with special authority or a finance minister ( not necessarily with a