these are mainly related to potential second - round effects on wages of the past increases in import prices, as well as to bottlenecks and shortages in labour markets. for the medium term, it remains paramount that wage developments remain moderate. in addition, it is crucial that structural adjustments continue. this requires sustained labour market reforms, continuing liberalisation of product markets and further integration in the financial services sector, all of which will expand economic activity and increase employment. it is equally important that further progress be achieved in the area of fiscal policy reform, with continuing progress in fiscal consolidation through limits in public spending growth, allowing both a reduction in remaining budget deficits and an alleviation of the fiscal burden on corporations and households without threatening or slowing the progress in fiscal consolidation. overall, the existence of the euro and the single monetary policy has provided the euro area with an institutional setting which leaves it significantly less exposed to external influences. within the euro area the maintenance of price stability over the medium term, together with further progress on structural reforms, will provide an important contribution to the achievement of sustained noninflationary economic growth and will thereby also support a further solid and sustainable expansion of the world economy. let me now give the floor to the vice - president, who will inform you about other issues decided by the governing council. the governing council has adopted a set of standards, recently endorsed by the g10 governors, as the minimum standards of the eurosystem's common oversight policy on payment systems. the eurosystem will assess all systemically important payment systems in the euro area against these " core principles " and will make the results of its assessments available to the public. concerning issues relating to euro banknotes and coins, i should also like to provide you with the following information. first, the governing council adopted an ecb guideline on the 2002 cash changeover. owing to the crucial importance of this matter, and given the responsibility of the eurosystem as a whole in achieving a smooth cash changeover, a legal framework has been established. the guideline will enable all those involved to become familiar with the basic rules to be followed in preparing for the introduction of the euro banknotes and coins. this ecb guideline will be published today on the ecb's website and shortly in the official journal of the european communities. second, yesterday evening the members of the governing council were given a presentation by publicis, the communication agency selected to assist in conducting the eurosystem '

1980s and in 1990, however, the impact of the latest oil price shocks on real gdp growth have been benign. whereas the oil price shocks of the 1970s, 1980s and the shock in 1990 were accompanied by a severe slowdown in global growth and outright recessions in many oil - importing countries, the current oil price increases are coinciding with the most favourable scenario for the global economy in the past 35 years. global gdp growth is estimated by the imf at 4. 8 % in 2005, compared with 5. 3 % in 2004 ( historical average : 3½ % ). and real growth in advanced economies in 2004 / 05 was above the long - term average and, according to the latest imf outlook, is projected to stay at around 3 % this year and next year. although the euro area is lagging behind, there are clear signs of a more sustained recovery in the quarters ahead. this marked difference is also supported by simple correlation analysis : the contemporaneous correlation between the level of annual oil prices and annual global growth was - 0. 6 for the period 1970 - 1991. for the period 1992 - 2005, however, the correlation coefficient has changed radically ( + 0. 6 ). this admittedly crude line of reasoning is supported by more formal country - specific econometric analysis. 1 equally remarkable is the behaviour of consumer price inflation in the current energy - price - driven economic environment. whereas the oil price shocks of the 1970s and 1980s went hand in hand globally with more or less a doubling of inflation rates, the latest oil price increases to date have not led to an escalation of consumer prices. on the contrary : the present global inflation rates are the lowest for 35 years. in the euro area, inflation rates in the aftermath of the oil price shocks edged up markedly in the 1970s and 1980s and went into double - digit figures. euro area inflation rates since 1999 have been much more contained. in light of such evidence : is the expression ‘ oil price shock ’ old hat? or, as david walton of the bank of england put it some weeks ago : “ has oil lost its capacity to shock? ” 2 there are several plausible explanations for the muted impact of oil price increases in recent times. to start with, the difference in today ’ s economic performance and that of earlier periods might, in part, be related to the different size and nature of the shock. the more than doubling in oil prices – though comparable in scale to earlier oil price shocks