wording of the pact, it would be possible to improve its implementation, in particular by better analysing the structural imbalances as well as by strengthening the incentives for sound fiscal policies during periods of strong economic growth. the introduction of such policies will also strengthen economic confidence and support demand in the short run. indeed, confidence among european citizens is vital for a stronger economic recovery and sustained growth. the ecb ’ s governing council recognises that the still low level of consumer confidence is related in part to the debate about the appropriate path for fiscal policy and structural reform in many countries in the euro area. also for this reason, progress with the implementation of the necessary structural reforms and more determined efforts to establish sound fiscal positions over the medium term are the key to stronger confidence. let me underline as a conclusion that the ecb, its governing council, and the full body of the eurosystem are doing all what they can for europe to cope with its present challenges. our best contribution, in conformity with our mandate, is to ensure price stability and to be credible in so doing not only on a short to medium term basis but also on a medium to long term basis. in fulfilling efficiently this role, the ecb brings about today a major contribution to european prosperity, growth and job creation : in consolidating a low level of medium and long term market rates for the 306 million citizens of the euro area ; in preserving the purchasing power of the household which is a necessary condition for consumption growth ; and in augmenting the level of confidence of economic agents which is so important in the present juncture in europe. ladies and gentlemen, thank you for your attention.

sabine lautenschlager : supervising banks - four priorities statement by ms sabine lautenschlager, member of the executive board of the european central bank and vice - chair of the supervisory board of the single supervisory mechanism, at the international monetary conference, london, 13 june 2017. * * * many thanks for your question, howard. so what priorities do i see at the moment? in respect of banking supervision there are four things that come to mind. most importantly, regulation has to remain a global issue ; the banking system is global in scope and we need to take a global approach to regulating it. reforms of banking regulation have now been under way for almost a decade ; it is time to finalise them, implement them and see how they work. but it is not only about the rules themselves ; it is also about their application. supervisors around the world apply the rules very differently. globally we should focus on how supervision is carried out and how we can learn from each other. what approaches are used? what are the best tools and methods? what are the best structures in terms of budget and independence, for instance? these are things we should discuss at global level – also with respect to brexit. that, in fact, is the second thing on my list of priorities. we all know that, in the event of a “ hard ” brexit, uk banks would have to seek a licence in the eu to do business on the continent. and here, i get the feeling that many banks are a bit too relaxed about this. so my message today to the banks is quite simple : the clock is ticking. obtaining a licence takes some time, so don ’ t put off applying for one for too long. but it is not just about banks. in the wake of brexit, we might also see entities, such as brokerdealers or third - country branches, setting up shop in the euro area. these entities would probably be supervised at national level. the market would become more fragmented and all the conditions for a race to the bottom would be present. it might thus be appropriate to have such entities supervised at european level. the current review of the european rulebook offers a chance to adapt the relevant rules. non - performing loans, or npls, are the third item on my list. in some parts of the euro area, banks still have large exposures to npls on their balance sheets – a legacy of the economic crisis. npls