riders. 12 it would, however, be rash to conclude that the market is now unambiguously healthy in all respects. there are still several factors which will continue to pose challenges to the investment, banking and valuing communities. for example, while lease lengths may have temporarily stabilised, break clauses exercisable by tenants are becoming more common. and despite the positive tone of the recent cbi / grimley survey, it is clear too that many occupiers will continue over the long - term to reduce their needs for space and to demand greater flexibility. privity of contract has disappeared on new leases. all of these factors are making it less straightforward to form a view of the quality of cashflow likely to stem from a particular building. 13 there is a sizeable overhang of unlet secondary property. the pool of such property increases every time that a major user of space moves into new offices and releases its former premises. while some of the better quality secondary property can be refurbished at an economic price and relet, much of this stock may never again be relet for its present use and may not lend itself readily to conversion for alternative uses. this will continue to exert a dampening influence on the market, and imaginative solutions will be needed. the future 14 so, the market may be improving but it is still not easy. how is the market likely to develop over the next eight years? what will i be saying if you invite me back in the year 2005? 15 as we all know, the property market has, historically, moved in cycles. some, notably rics, have done work to develop our understanding of these cycles. the economic cycle itself is clearly one of the driving factors, though it is clear too that property is subject to its own fluctuations and its own step changes. contributing factors include the strength of tenant demand, the activities of developers and the willingness of lenders to finance investment and development. 16 my story in the future could be similar - perhaps depressingly similar - to my review of the recent past. many of the ‘ ingredients ’ that contributed to the last cycle are certainly present now. institutional investors are attracted to the sector in the short - term but they could easily resume their longer - term departure from property in a couple of years. this could happen if property ’ s performance runs out of steam as the economic cycle progresses and other asset classes begin to look more attractive. it is conceivable that the banks might

into opportunities. for example, when slovenia joined the eu, it was exposed to greater levels of competition from other member states in the economic bloc. but slovenia quickly capitalised on its skilled workforce to develop a new business model based on deep integration in the single market. today, every single car produced in europe has at least one component that is made in slovenia. 4 for europe, the changes in the global economy today represent a similar turning point. but if we approach it with the right spirit, i believe it can be an opportunity for renewal. a less favourable global economy can push us to complete our domestic market. fiercer foreign competition can encourage us to develop new technologies. more volatile geopolitics can drive us to become more energy secure and self - sufficient in our supply chains. for slovenia, the transformation of the automotive supply chain will be a particular challenge. but the economy is already adapting. for example, in july this year slovenia secured a major investment in domestic electric vehicle production. 5 for many slovenians, striding into an unpredictable future may seem like second nature. one of your most famous paintings, " the sower ", hangs on display here at the national gallery. depicting an agricultural labourer at the crack of dawn hard at work sowing seeds in a field, the painting represents slovenians'resolute determination in the face of uncertainty. the rest of us in europe will need to draw on this example in the uncertain times ahead. if we do so, we can also turn uncertainty into opportunity. the importance of sharing the benefits of change the second lesson from slovenia is that the benefits of change can – and should – be more widely shared. the path of renewal for europe is inescapably linked with new technology, especially digitalisation. but new technologies can sometimes lead to uneven labour market outcomes. slovenia has undergone remarkable technological change over the past 20 years. today, the country's level of digital development is 7 % above the ceec average and it can compete with some of the most digitally developed eu countries in certain areas. 6 2 / 4 bis - central bankers'speeches yet slovenia's gini coefficient – a measure of income inequality – is the second lowest in the oecd. 7 the country also benefits from high levels of gender equality. female labour force participation is higher than the eu average and nearly equal to that of men. many in europe are worried about the challenges ahead, such as the effects of artificial intelligence on social inclusion.