it, at least for the medium - term. under brrd, banks will have to maintain a minimum level of liabilities that are eligible to be bailed - in, meaning shareholders and creditors will absorb the majority of losses. moreover, it seems very likely that brrd will contain a depositor preference rule, with insured deposits given the highest priority. this means that only in extreme cases will deposit guarantee schemes have to pay out. national arrangements, harmonised under the deposit guarantee scheme directive, should therefore be sufficient. taken together, these two elements – the ssm and the srm – form a robust foundation for banking union. it is essential that we make progress on each in parallel. thank you. bis central bankers ’ speeches

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