the current economic “ good times ” should be used to rapidly redress the remaining budgetary imbalances in euro area countries as well as to accelerate the adjustment towards their medium - term objectives of sound budget positions with a focus on expenditure restraint. as agreed by the euro area finance ministers at the eurogroup meeting in berlin on 20 april, taking advantage of the favourable cyclical conditions would enable most euro area members to achieve their medium - term objectives in 2008 or 2009, and all of them should aim for 2010 at the latest. this is particularly important with a view to reducing the still high government debt ratios and preparing for the fiscal challenges arising from population ageing. in order to ensure that fiscal developments are monitored effectively, the governing council supports all efforts by eurostat to improve the fiscal data situation. it also welcomes the increased emphasis placed by the ecofin council on measures to improve the quality of public finances and increase the efficiency of public administration. as regards structural reforms, the governing council fully supports any efforts that enhance competition, increase productivity and foster economic flexibility, thus promoting higher sustainable real gdp growth and employment. in this respect, we strongly back reforms focusing on reducing labour market rigidities, product market barriers and administrative burdens, and on stimulating technological innovation. exploiting the complementary nature of reforms would increase their benefits in terms of long - term economic dynamism and price stability. furthermore, the importance of a successful conclusion of the doha round of trade talks for productivity and growth in europe should not be underestimated. in the end, higher productivity growth will allow increases in real wages without negatively affecting employment, thereby supporting the income growth of the euro area workforce. we are now at your disposal for questions.

european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank and mr lucas papademos, vice - president of the european central bank, frankfurt am main, 6 june 2007. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to today ’ s press conference. let me report on the outcome of our meeting, which was also attended by the president of the eurogroup, prime minister juncker, and commissioner almunia. at today ’ s meeting, we decided to raise the key ecb interest rates by 25 basis points. this decision was taken in view of the prevailing upside risks to price stability over the medium term that we have identified through both our economic and monetary analyses. today ’ s decision will contribute to ensuring that medium to longer - term inflation expectations in the euro area remain solidly anchored at levels consistent with price stability. such anchoring is a prerequisite for monetary policy to make an ongoing contribution towards fostering sustainable economic growth and job creation in the euro area. after today ’ s increase, given the positive economic environment in the euro area, our monetary policy is still on the accommodative side, with overall financing conditions favourable, money and credit growth vigorous, and liquidity in the euro area ample. looking ahead, acting in a firm and timely manner to ensure price stability in the medium term is warranted. the governing council will monitor closely all developments to ensure that risks to price stability over the medium term do not materialise. allow me to explain our assessment in greater detail, starting with the economic analysis. incoming information clearly confirms that the euro area economy continues to expand at a pace which is significantly stronger than generally expected a year ago. with a quarter - on - quarter rate of 0. 6 %, real gdp growth in the first quarter of 2007 was again somewhat above previous expectations. other available information on economic activity, notably various surveys of business and consumer confidence, suggests that solid growth has continued into the second quarter. looking ahead, the medium - term outlook for economic activity remains favourable. the conditions are in place for the euro area economy to continue to grow at a sustained rate. as regards the external environment, global economic growth has become more balanced across regions and, while moderating somewhat, remains robust. external conditions thus continue to provide support for euro area exports. domestic demand in the euro area is also expected to maintain its relatively strong