is also proposed in the draft resolution to continue to improve the ecb ’ s analytical infrastructure. transparency i would also like to welcome the committee ’ s recognition that making the minutes of the ecb governing council ’ s meetings available to the public would not be advisable. such a measure would draw attention to individual positions when in a euro area of 15 – and very soon 16 – countries, what counts is the position of the collegial decision maker, the governing council. it could also lead to pressures on governing council members to abandon their necessarily euro area perspective when taking monetary policy decisions. as already emphasised on previous occasions, i see the introductory statement i present on behalf of the governing council at the monthly press conference as an equivalent to what other central banks call “ summary minutes ”. together with the ensuing q & a session, the introductory statement provides in real time a comprehensive overview, on the part of the governing council, of the current monetary policy stance. this communication instrument has served us very well in guiding financial market expectations. fiscal policies as regards fiscal policies, the ecb shares the view expressed in the draft resolution that all member states must fully respect the stability and growth pact. however, after the decline of the past four years, a renewed increase in the euro area aggregate fiscal deficit ratio is projected for 2008. there is a clear risk that some countries will not comply with the provisions of the preventive arm of the stability and growth pact. achieving sound and sustainable budgetary positions and on this basis allowing the free operation of automatic stabilisers is the best contribution fiscal policy can make to macroeconomic stability. economic differentials in the euro area and structural policies the draft resolution also refers to the risks posed by economic differentials across euro area countries, which to some extent reflect structural rigidities and / or inappropriate national policies. it goes without saying that economic divergences across euro area countries cannot be addressed by monetary policy. in order to avoid a protracted period of either low growth and high unemployment or overheating, as a country responds to asymmetric shocks, reforms to enhance the resilience to such shocks should be undertaken at the national level. these include well designed structural reforms to enhance competition, increase productivity and foster labour market flexibility. greater flexibility in euro area labour markets and wages would reduce adjustment costs and inflation pressures in the event of adverse supply shocks and would augment the economy ’ s resilience, thus limiting employment losses and facilitating the conduct of the stability

. we are in process of reviewing these guidelines to facilitate wider participation. since one of the subtheme of the conference is “ term rate structure and transmission of rates ”. i will urge the panel members to discuss these issues relevant for further development of the repo market and forward their comments to rbi. triparty repo 30. internationally, various jurisdictions have moved to tripartite repo to improve operational efficiency in the repo market. in india, cblo is somewhat akin to tripartite repo. however we do not have true tripartite repo. substitution of securities in repo transactions is not permitted in india. this has discouraged borrowers to enter into repo transactions for long tenors. though introduction of re - repo has created enabling environment for lender of funds to go for long term funding, borrower of funds continue to have the problem of securities being blocked for longer period. it is argued that the introduction of tripartite repo in g - sec which allows substitution of securities will encourage market participants to enter into repo contracts for longer tenors. the working group on enhancing liquidity in the government securities and interest rate derivatives markets ( chairman : shri r gandhi ) has also made the recommendation and reserve bank is in process examining the recommendation. market making in government securities 31. secondary market liquidity in the government securities market has grown substantially in absolute terms during the past one decade. however, it is observed that the secondary market trading in is limited to about eight - ten securities out of a total number of 86 securities. in fact, of late, liquidity in bond markets is becoming a problem in many countries for various reasons. for better monetary transmission, it is necessary to improve liquidity across yields curve. the issues have been examined in detail by the gandhi committee and recommendations made by the committee are being implemented in phased manner. 32. one of the recommendations which is crucial for enhancing liquidity across the maturity spectrum is introduction of market making scheme for the pds. various options have been discussed with pds in last few months, and a model based on market feedback is being discussed with the government. i would also suggest that pds may consider providing two way quotes for liquid securities in various tenors in the odd lot segment. the list of securities can be identified and published by pdai on quarterly basis. this will not only encourage participation of retail and small investors in the g - sec market but would also act as stepping stone towards implementation