m3 over the past few years, substantially more liquidity in the euro area exists than is needed to finance non - inflationary economic growth. this could pose risks to price stability over the medium term and warrants vigilance. the exceptionally low level of real interest rates is also further stimulating private sector demand for credit. growth in loans to non - financial corporations has continued to pick up in recent months. moreover, demand for loans for house purchase has continued to be robust, contributing to strong house price dynamics in some regions of the euro area. to sum up, the economic analysis confirms that underlying domestic inflationary pressures remain contained, while medium - term upside risks to price stability exist and will be monitored closely. cross - checking with the monetary analysis supports the case for continued vigilance with regard to the materialisation of risks to price stability over the medium term. turning to fiscal policies, the governing council notes that, while some progress with fiscal consolidation and the correction of excessive deficits is envisaged in euro area countries ’ updated stability programmes, further consolidation in a number of countries is needed. in particular, several countries do not plan to pursue an appropriately ambitious adjustment path and are not targeting close - to - balance or in - surplus budgetary positions by the end of the programme horizon. in addition, in some cases, fiscal targets are based on rather favourable growth assumptions and on insufficiently specified measures. with respect to the stability and growth pact, discussions now need to be brought to a convincing conclusion with an outcome that safeguards fiscal discipline. the credibility of the excessive deficit procedure needs to be fully preserved. this is not only fundamental for macroeconomic stability and cohesion in the euro area but also for confidence and growth prospects in all member states. in this regard, the governing council welcomes the decision by the ecofin council, based on a recommendation by the european commission, to move, for the first time, to the next procedural step in the excessive deficit procedure and to give notice, in accordance with treaty article 104 ( 9 ), to greece. the governing council also takes the view that the extension of the deadline, from 2005 to 2006, for correcting the excessive deficit pushes the room for interpretation of the rules and procedures to the limit. it is now indispensable for greece to take effective action to correct its severe fiscal imbalances. as regards structural developments, the euro area has seen relatively low trend productivity growth since the mid - 1990s. an analysis of the deter

linah k mohohlo : post - recession role of accountants in business speech by ms linah k mohohlo, governor of the bank of botswana, to the association of certified chartered accountants, gaborone, 17 september 2010. * * * i would like to begin by thanking the country manager of botswana ’ s association of certified chartered accountants, ms gwen sabarwal, for inviting me to be a part of the association ’ s gala dinner for 2010. i am informed that it is the association ’ s tradition on this occasion to invite a notable person in the community to speak on some issue of topical interest. it humbles me, therefore, that i have been considered worthy of the platform for this year ’ s event. you will agree that this time round, for me, any topical issue is bound to be coloured by, and related to, the recent global financial meltdown and related deepest economic recession since the great depression of the 1930s. the causes of the difficult economic episode are now common knowledge, with sources from private and public sectors at individual and collective levels, in areas of public policy, corporate strategy and business operations. in other words, all professions, including accountancy, contributed directly or indirectly to the economic meltdown. now, everyone is looking through the rear view mirror while at the same time focussing on the road ahead. before delving more on the issues, i would like to commend your association ( ms sabarwal ) for the commitment to training accountants in botswana over the years. it is encouraging to learn that, since 1990, two years following the enactment of the relevant legislation, the membership of the association of certified chartered accountants in botswana has grown to more than 350, and the student in - take has continued to increase. it is also encouraging to observe that the more than 96 percent membership retention level you have so far achieved is fairly comparable internationally. this should provide confidence that you will reach your 2010 / 2011 retention target of 98 percent with relative ease. however, i happen to know that there is a big deficit in the supply of accountants in botswana. apparently the demand in the market is about 3 000, while the supply is just over 1 000, the lion ’ s share of which are expatriates. i have no doubt that your association shares this concern, given the fact that the shortage of professionals in accounting and related disciplines can only raise costs and, therefore, be unaffordable for many small and medium size