. therefore, it is essential to establish an effective framework for macroprudential supervision that will ensure both the systematic analysis of risks and the formulation of policies to address such risks. the state of the greek economy the economic slowdown has been less severe in greece than in many other european countries. however, this outcome reflects factors that, if left untreated, will reduce growth potential in the medium term. specifically, the performance of the greek economy during the crisis reflects the relatively - low level of openness and the deterioration of public - sector balance sheets from a position that was already worrisome prior to the onset of the crisis. a factor that has, however, supported the greek economy has been the soundness of its banking system. greek banks have been free of toxic assets and their exposure to the emerging economies of south - eastern europe has remained within manageable limits. a recent stress test conducted in close cooperation with the imf has reaffirmed the soundness of the greek banking system. the relatively - high growth rates experienced by the greek economy since its entry into the euro area reflect a catching - up process. to sustain a robust growth rate in the future, greece will need to address several key challenges, reflected in persistently very large currentaccount imbalances, high fiscal deficits, and worrisome debt levels. these imbalances are the result of structural rigidities, which have undermined competitiveness over time. to restore competitiveness and remove the imbalances, a dual agenda needs to be concurrently implemented : first, a multi - year program of fiscal consolidation, which can reduce risk premia and crowd - in private investment, raising the growth potential of the economy ; second, bold and wide - ranging institutional reforms in the public sector and structural reforms in product and labor markets, which can enhance productivity and raise the employment rate. only by undertaking these reforms will the greek economy be able to become more competitive and increase its growth potential and the prosperity of its citizens. the broad support received by the newly - elected government will greatly facilitate the implementation of the reform agenda.

sir k dwight venner : the eccu economic review 2005 presentation by sir k dwight venner, governor of the eastern caribbean central bank, at the eccb headquarters, st. kitts, 12 january 2006. * * * good evening fellow citizens of the eastern caribbean currency union on behalf of the monetary council, board of directors, management and staff of the eastern caribbean central bank, i bring you greetings and best wishes for the new year. i welcome this opportunity, once again, to address you on the economic performance of the currency union during the past year, and to share with you the bank's views on the prospects for this year. the year 2006 will be one of the most defining periods in the lives of the people of the oecs and the wider english speaking caribbean. the reason for this is simple. it lies in the wide variety and great intensity of the challenges we will face as very small states in a rapidly changing regional and international environment. there will be tremendous challenges for us in how our political, economic and social institutions exercise their capacity to respond to new and unexpected circumstances in a global environment, in which each national entity places its interests before those of others. in fact, recent circumstances, most notably the negotiations on access for our bananas into the european union clearly indicate that our small size does not evoke much sympathy in international economic relations. this should make it abundantly clear to us that we need to proceed into the future with an increased sense of realism, objectivity and clarity. it is, therefore, perhaps more than symbolic that in 2006 we will be celebrating the 25th anniversary of the signing of the treaty of basseterre. this treaty of cooperation between our countries has been in very large part responsible for their survival and growth over the intervening years. it is also important to note that we have been working on revisions to the treaty, and that these will reflect our considered responses to the changes which have been taking place in the domestic and external environments. the year 2006 will witness some very specific events and circumstances which will require new and strategic responses from us as individuals, families, business firms, trade unions, civic organisations, countries and as a closely connected group of countries, that is the oecs. the major challenges in the international arena will come from the new trading regimes which are now being negotiated under what is called the doha round. the major issues involved would be liberalisation in the trading of agricultural commodities and services. these will have a major