on the important details of its program. success would be a very important step forward in solving the current problems of the finnish economy. final remarks rating agencies seem to have strong confidence in the finnish political system's ability to make difficult decisions. at this point, such ability is badly needed. the difficult decisions can still be made with no external pressure. it is important to make the decisions early enough so that finland can avoid the situation where the market pressures force the government to make the decisions. the next months will be a major test for the reform capacity of the finnish political system. finland will thus be a case study for the subject matter of this conference. progress in reforms is needed in order for the finnish economy to be a success story again. what is certain is that things will change : the finnish economy will not go back to what it was five years ago. bis central bankers ’ speeches

, bilateral trade between the us and china has stalled, and some supply chains have been relocated from china to southeast asia, mexico and emerging economies in europe. these shifts aim to mitigate supply chain disruption risks and avoid import tariffs or export restrictions. secondly, russia's war in ukraine has effectively isolated russia from the european union, the g7 countries and their allies. this has resulted in a dramatic reduction in trade between the eu and russia since february 2022. the goal of the sanctions is clear : to cause damage to the russian war machine and its imperialistic invasion. slide 6. domestic value - added has decreased in the eu in this complex environment, it is useful to examine whether production is being reshored transferred back home at significant levels. in other words, is globalisation truly reversing? our staff analysis of the origins of value - added in manufacturing indicates that in the united states, the share of domestically produced value - added increased between 2018 and 2023. conversely, in the eu, there was a small decrease in domestic valueadded. this suggests some reshoring dynamics in the us and the opposite in europe. slide 7. chinese value - added has increased in the eu and remains unchanged in the us our findings also highlight the challenges of decoupling or de - risking from china, due to the deeply integrated nature of global production networks. even though direct trade between china and the united states shows signs of a modest decline, the share of chinese value - added in us manufacturing imports remained stable during the period examined. it appears that value chains are simply being re - routed through connector countries like mexico and vietnam. in the european union, chinese value - added in manufacturing has in fact increased since 2018. this illustrates the challenges related to even moderate decoupling, which in europe is seen as necessary de - risking in today's geopolitical context. in this challenging global context, the european central bank's monetary policy aims at ensuring price stability, which also supports the eu's general economic policies. slide 8. eu free trade agreements in 2024 : status report in this challenging global context, the european central bank's monetary policy aims at ensuring price stability, which also supports the eu's general economic policies. 3 / 4 bis - central bankers'speeches slide 9. euro area inflation is stabilising at the 2 % target in the euro area, disinflation is well on track. wage pressures have also somewhat receded.