shared their knowledge and experience with their egyptian counterparts to reform the internal procedures and policies of the central bank of egypt towards a greater focus on risk - based supervision. this programme ended in november 2007 and was considered a success by all those involved. the new programme on banking supervision will begin on 1 january 2009 and will build on the capacity of the staff of the central bank of egypt in terms of risk - based supervision. as i have already mentioned, it will run for a period of three years and will be funded by the european union. the aim of the programme is to support the central bank of egypt in drafting new rules, policies and practices that will effectively create an appropriate egyptian version of the internationally accepted banking supervision standard known as basel ii. in this process we will also take account of the most recent european experiences from the financial market turmoil. more specifically, we will assist the central bank of egypt ’ s banking supervisors in developing a specific egyptian guideline for the implementation of basel ii, as well as a new regulation that will apply to banks in the country and a new reporting scheme for banks in order to provide the central bank of egypt ’ s banking supervisors with the information they need to carry out their job. before this goal is reached, many steps need to be taken and many publications will be printed. as always, it will be very important to design the new framework in such a way that it is suitable for local market conditions. with this aim in mind the european union ’ s banking supervisors will support the central bank of egypt in its key dialogue with egypt ’ s commercial banks to begin in the first half of 2009. from the side of the european system of central banks, or the escb, i. e. the european central bank and the national central banks of the european union, the programme will be implemented by the european central bank in partnership with seven national central banks, namely those of bulgaria, the czech republic, germany, greece, france, italy and romania. the banking supervisors from these countries will support and assist their egyptian colleagues in the challenging tasks that they have set out to achieve. i would like to welcome the representatives from the escb that are here today. from our side there will be a need to coordinate these efforts and to be continuously available to support the work of our egyptian colleagues. this will be the main task of mr herve leclerc, inspector of the banque de france, who will be our resident programme coordinator here in cairo from 1 january for three

in a cost - of - living crisis ”, speech at the iv edition foro la toja, 30 september. 6. fernald, j. and li, h. ( 2022 ), “ the impact of covid on productivity and potential output ”, working paper series, no 2022 - 19, federal reserve bank of san francisco, september. 7. bandera, n., bodnar, k., le roux, j. and szorfi, b. ( 2022 ), “ the impact of the covid - 19 shock on euro area potential output : a sectoral approach ”, working paper series, no 2717, ecb, september ; aikman, d., drehmann, m., juselius, m. and xing, x. ( 2022 ), “ the scarring effects of deep contractions ”, bis working papers, no 1043, october. 8. le roux, j., szorfi, b. and weißler, m. ( 2022 ), “ how higher oil prices could affect euro area potential output ”, economic bulletin, issue 5, ecb. 9. in a similar vein, the international monetary fund has argued that fiscal policy should not work at crosspurposes with monetary policy. see imf ( 2022 ), “ world economic outlook ”, october. 10. research shows that public investment raises the productivity of the physical and human capital stock and may also encourage new private investment. see abiad, a., furceri, d. and p. topalova ( 2016 ), “ the macroeconomic effects of public investment : evidence from advanced economies ”, journal of macroeconomics, 50 : 224 – 40. 11. fornaro and wolf ( 2022 ) argue in favour of fiscal policy supporting business investment. in fact, in their model, monetary tightening in response to a supply side shock may be self - defeating, unless it is accompanied by fiscal policies fostering the economy ’ s productive capacity. see fornaro, l. and m. wolf ( 2022 ), “ the scars of supply shocks ”, economics working papers 1748, universitat pompeu fabra. 12. for the impact of next generation eu on financial integration and public risk - sharing, see european central bank ( 2022 ), “ financial integration and structure in the euro area ”, april