to remain healthy, while re - payment difficulties would continue to ease. not surprisingly in this context, there is a broad consensus among forecasters on a scenario of rapid economic growth in france, with inflation remaining within the definition of price stability for the two years ahead. so far, the consensus forecast predicts that real gdp could increase by some 3. 4 % in 2000 and by 3. 0 % in 2001, while consumer prices will grow by 1. 2 % in both years, although more recent forecasts indicate that prices could rise more rapidly. it is also widely expected that growth will be sustained by both domestic and external demand and will result in continued employment growth and further reductions in unemployment. this is a bright picture and we should wish that it all comes true, not only in 2000 and 2001, but also beyond. but, although this scenario for the coming years is a likely one, it is important to bear in mind that it is subject to uncertainties. some of them, like the event of an unexpected external shock, cannot be eliminated. but others fall within national responsibility. proper economic policies and / or an adequate consensus among economic agents can in some cases be key factors in ensuring that crucial pending issues are faced in a way compatible with sustained and non - inflationary growth. among the pending issues for the future of the french economy, the implementation and financing of the 35 - hour working week is certainly an important one. but other uncertainties also call for attention. i would like to stress the importance of maintaining the credibility of fiscal consolidation. in this regard, avoiding any relaxation of the fiscal stance, as well as reducing the risk of any deficit slippage in the event of an unexpected growth slowdown are certainly key elements. moreover, with a view to external competitiveness, an explicit commitment on the part of the social partners to maintain wage developments in line with productivity increases is an important factor. more generally, france faces the same fundamental challenge as the other european economies. it can be summarised in the following short question : “ how can one develop an internal dynamic for sustainable long - term growth? ” this is a crucial challenge if one wants to significantly reduce unemployment. and, at the same time, in an increasingly integrated world economy, one wishes the euro area economy not to be too vulnerable to every external slowdown. by committing themselves to fostering low inflation and sounder public finances, public authorities, both french and european, have been working for years to develop the necessary

background environment for such a domestic dynamic. the relative resilience of the french economy, despite the recent temporary slowdown, could be a sign of a successful policy mix in this regard. earlier in my speech i spoke about the “ new economy ”, an appealing expression which is also being used more and more when referring to the good performance of the french economy in the recent past. however, for its true emergence, two important elements are required. first is the commitment to maintain an environment with moderate developments in production costs and to pursue sound public finances. second is the need to continue and step - up the process of structural reforms. that is the only way to foster employability of the labour force and to encourage entrepreneurship, leading to appropriate choices in terms of product specialisation and ultimately, high economic growth coupled with macroeconomic stability.