serve as a test of the new framework ’ s effectiveness and renewed progress towards achieving sound medium - term budgetary positions. let me emphasize, that it should be of the highest priority, especially if combined with a comprehensive economic reform strategy! with a view to the third pillar, eu policy makers are well aware of the importance of structural reforms and they did commit to action when the european council adopted the lisbon strategy five years ago. some encouraging structural reforms notwithstanding – let me mention here as examples the liberalisation of the electricity market and the progress in pension and labour market reforms – the lisbon strategy fell short of its initial goals. even if we consider the time lag between the implementation of reforms and their taking the intended effects, the increase in potential growth was disappointing. in addition it has obviously proven difficult to communicate the benefits of long - term growth effects of structural reforms to the general public. social and economic progress often entails significant changes in the life of individuals, with risks as well as benefits. these legitimate worries need to be taken seriously and addressed appropriately. as a new start for the lisbon strategy, in spring 2005 the european commission presented the “ community lisbon programme ” focusing on two principal tasks – delivering stronger, lasting growth and more and better jobs. the idea is to modernise our economy in order to secure the european 2 / 3 social model in the face of increasingly global markets, technological change, environmental pressures, and an ageing population – a difficult challenge! but we need to invest more in the young people, education, research and innovation. we also need to further open markets, to invest in modern infrastructure and to take the necessary steps to develop a skilled and entrepreneurial workforce. some of the policy actions will take time to show visible effects, others will deliver early benefits. in all cases they must be approached with a strong sense of urgency and collective responsibility of all the member states of the european union. due to the recent enlargement of the eu the necessity of ongoing structural reforms became more stringent also for the old member states. moreover, the new member states demonstrated in many areas that even unpopular reforms, like pension reforms, can be accomplished when tackled right. increased competition from within and the will to further the competitiveness of the eu as a whole are surely very nice side effects of the enlargement and an incentive to take the revival of the lisbon strategy seriously. although emu represents a highly successful achievement it cannot be considered as the end - point of the european integration process

this area and we are monitoring the situation in the market to ensure that borrowers are enjoying a reduction in their effective lending rates. we do not want the reduction in the base lending rates to be cosmetic, but should be reflected in lower effective lending rates for measures taken so far to be meaningful. furthermore, with the reduction in the corporate tax rate for banks recently announced by the minister of finance in his 2012 budget, the expectation is for a further reduction in lending rates by commercial banks going forward. ladies and gentlemen, this initiative is positive and both bancabc and norfund should be highly commended for it. as a financing institution, i am aware that norfund financing rates are favourable. i want to encourage bancabc to pass the benefit of getting money at bis central bankers ’ speeches favourable norfund rates to the final borrowers so that the sme sector will experience the full benefit of this relationship. i wish to end by wishing bancabc the best and success in growing a successful sme lending portfolio. i thank you … bis central bankers ’ speeches