6 - month and 12 - month refinancing operations mature. overall, the current monetary policy stance remains accommodative. monetary policy will do all that is needed to maintain price stability in the euro area over the medium term. this is the necessary and central contribution that monetary policy makes to fostering sustainable economic growth, job creation and financial stability. all the non - standard measures taken during the period of acute financial market tensions, referred to as “ enhanced credit support ” and the securities markets programme, are fully consistent with our mandate and, by construction, temporary in nature. we remain firmly committed to maintaining price stability over the medium to longer term. the monetary policy stance, the overall provision of liquidity and the allotment modes will be adjusted as appropriate. accordingly, the governing council will continue to monitor all developments over the period ahead very closely. let me now explain our assessment in greater detail, starting with the economic analysis. after a period of sharp decline, euro area economic activity has been expanding since mid2009. euro area real gdp grew strongly on a quarterly basis, increasing by 1. 0 % in the second quarter of 2010, supported by ongoing growth at the global level but also in part reflecting temporary domestic factors. recent data and survey evidence generally confirm the expectation of a moderation in the second half of this year, both at the global level and in the euro area. nevertheless, while uncertainty still prevails, they continue to indicate a positive underlying momentum of the recovery in the euro area. ongoing growth at the global level and its impact on the demand for euro area exports, together with the accommodative monetary policy stance and the measures adopted to restore the functioning of the financial system, should continue to support the euro area economy. however, the recovery in activity is expected to be dampened by the process of balance sheet adjustment in various sectors and labour market prospects. this assessment is also reflected in the september 2010 ecb staff macroeconomic projections for the euro area, according to which annual real gdp growth will range between 1. 4 % and 1. 8 % in 2010 and between 0. 5 % and 2. 3 % in 2011. compared with the june 2010 eurosystem staff macroeconomic projections, the range for real gdp growth this year has been revised upwards, owing to the stronger than expected rebound in economic growth in the second quarter as well as better than expected developments over the summer months. for 2011 the range has also been revised upwards

emerge, reflecting factors such as a more favourable than expected macroeconomic environment, should be exploited to make faster progress with fiscal consolidation. at the same time, in countries where there is still a need to take additional specific measures to achieve consolidation targets, such measures should be adopted swiftly to ensure that consolidation commitments are fulfilled. this is a prerequisite for maintaining confidence in the credibility of governments ’ fiscal targets. positive effects on confidence can compensate for the reduction in demand stemming from fiscal consolidation, when fiscal adjustment strategies are perceived as credible, ambitious and focused on the expenditure side. the conditions for such positive effects are particularly favourable in the current environment of macroeconomic uncertainty. in order to support the process of fiscal consolidation, to underpin the proper functioning of the euro area and to strengthen the prospects for higher sustainable growth, the pursuit of far - reaching structural reforms is essential. major reforms are particularly needed in those countries that have experienced competitiveness losses in the past or that are suffering from high fiscal and external deficits. measures should ensure a wage bargaining process that allows wages to adjust flexibly and appropriately to the unemployment situation and losses in competitiveness. reforms to strengthen productivity growth would further support the adjustment process of these economies. we are now at your disposal for questions.