a virtual standstill of mexican exports. notwithstanding the above, the mexican economy ’ s performance in 2001 and 2002 presents some positive aspects. we can highlight the fact that mexico has experienced a “ normal ” recession since 2001, if such a word is allowed. throughout decades, mexico knew the dark side of recessions, the one that we used to call “ crisis. ” however, the experience that we have had with the recession that started in 2001 and the incipient recovery of 2002 has been quite different : • the public deficit has been close to its target in the last two years ; • in 2002, the current account deficit was below 3 % of gdp and was financed almost entirely by fdi ; • the exchange rate was relatively stable in 2001 and 2002, and actually, current peso depreciation has not affected the price level because exchange - rate pass - through has been virtually nonexistent ; • inflation has been under control ; • the main peso - denominated nominal interest rates have fallen to single - digit levels, and the government and some private enterprises are issuing bonds in pesos at longer terms ( up to ten years ) ; • foreign direct investment reached a record high in 2001 and maintained a high level in 2002. the vulnerability of the mexican economy to recent external disturbances has been limited because of three factors : a ) we have been able to advance in the strengthening of the macroeconomic fundamentals ; b ) the economic links with the united states have been reinforced, and c ) in recent years, mexico has consolidated its institutions, politically and economically. institutional improvements two types of factors have contributed to the strengthening of the mexican economy. it is important to highlight the economic policies that have been implemented, including the floating exchange - rate regime and the inflation - targeting framework that has been adopted for the conduct of monetary policy. in addition, progress achieved through the consolidation of the institutional framework has reinforced the effects of economic policy. in the wake of the 1995 crisis, the public has developed a growing consciousness about the importance of prudent economic policies, and a consensus has slowly gathered in favor of reaching a lower inflation rate and keeping a lower fiscal deficit. although a lot of progress has been made on the institutional framework in many areas, i will focus on the elements i believe are the most important : • fiscal discipline ; • inflation abatement ; • consolidation and capitalization of the financial sector ; • reinforcement of electoral institutions and increased democratic credibility ; • independence of the supreme

by the european council for workers, businesses and sovereigns provide important funding support in this context. the governing council recognises the key role of the next generation eu package and stresses the importance of it becoming operational without delay. provided the funds are deployed for productive public spending and accompanied by productivity - enhancing structural policies, next generation eu will contribute to a faster, stronger and more uniform recovery and will increase economic resilience and the growth potential of member states ’ economies, thereby supporting the effectiveness of monetary policy in the euro area. such structural policies are particularly important in addressing long - standing structural and institutional weaknesses and in accelerating the green and digital transition. we are now ready to take your questions. 3 / 3 bis central bankers'speeches