fiscal authorities. the channels for the exchange of information between fiscal and monetary authorities are also well developed. but there cannot and will not be any precommitment to a particular course of monetary policy action. this would undermine the ecb ’ s independence and therefore violate our mandate. from a fiscal policy point of view, it should be noted that although the exit from monetary measures will be uniform across the euro area, it is likely to have asymmetric fiscal impacts given the current substantial heterogeneity of fiscal positions. a potential increase in market interest rates will have a much stronger impact on highly indebted countries, in particular those with outstanding government bonds with short maturities. the need for fiscal flexibility under a single monetary policy places a clear premium on timely and credible fiscal consolidation in all euro area member countries. conclusion to conclude, in response to the crisis, governments and central banks across the globe have taken immediate and unprecedented measures. governments have implemented measures to rescue the banking sector and stimulate the economy. central banks have lowered rates to very low levels in response to receding inflationary pressures and risks ; and they have provided ample liquidity to the banking system, so as to support the transmission mechanism of monetary policy. the key questions are when and how to phase out these measures once the overall situation starts to return to normal. this is the most challenging task for both governments and central banks. but i am confident that the ecb ’ s broad - based monetary policy strategy, which has shown itself to be robust and forward - looking, will continue to serve us well in handling this challenge. the fact that our risk assessment is rooted in both economic and monetary analysis ensures that all relevant information is taken into account. the crisis is not yet over. the time to exit has not yet come. but i can assure you that we will continue to monitor very closely all developments in the period ahead, in order to be in the best possible position to continue to deliver on our task of maintaining price stability over the medium term, and thereby support the purchasing power of euro area citizens.

law. law enforcement agencies are overwhelmed by the sheer size and sophistication that criminals are now employing to perpetrate their illegal deeds. the efforts on crime prevention are now compounded by globalization that has created what one may say is a global economy in which organized crime groups and individuals can and do generate huge sums of money. money laundering is therefore a global problem which requires a concerted global response. in order to protect our respective financial systems from the destabilizing effects of crime and money laundering, it is imperative that we act and respond to this scourge with unmatched resolve and commitment to combating it. everybody has, therefore, a responsibility to combat money laundering, because its negative impact has a unique way of creating far ranging negative consequences. the financial sector, in particular the banking sector, more than any sectors, needs to operate in a crime and money laundering free environments. we all know that banks deal with other people ’ s money and therefore rely heavily on reputation for integrity. without the public confidence from the law abiding citizenry it would be difficult for financial institutions to conduct business in the form they do now. it is also conceivable that money laundering, if perpetrated on a high scale, would complicate the ability of financial institutions to manage their operations and risks. another consequence of money laundering on a grand scale is that it may erode the effectiveness and management of monetary policy, because of its potential of changing the demand for cash in the economy. money laundering is also bad for the economy and development in that it undermines legitimate business, competition and reduces the tax revenue to national authorities as launderers would be operating underground outside the tax net. the combating of money laundering presupposes the existence of capacity and resources at national level. in many of developing countries, this is a real challenge in that there are competing demands with regards to the utilization of scarce resources. the scarcity of resources is more critical in the law enforcement spheres, since most national jurisdictions have less than efficient law enforcement agencies which are in most cases overwhelmed by the demands to enforce other national laws. in conclusion, i would like to urge members of the public to look out for information on combating money laundering, starting next week. i look forward to everyone ’ s participation in effectively combating money laundering. i thank you for your attention.