foremost, the comparative advantages of german firms stemming from their specialisation in consumer durables and high - end capital goods which were largely in demand during the last upswing. the impact of price competitiveness on germany ’ s export strength, by contrast, is often overestimated. finally, the external surpluses by definition also imply that total investment in germany was lower than total saving. given that germany ’ s population is shrinking and growing older, persistent current account surpluses leading to an increase in net foreign assets are a rational reaction to smooth the burdens of aging over time. therefore, the problem has been less about the emergence of current account surpluses in germany and more about how they have been used abroad. in some euro - area member states and in particular those with large pre - crisis current account deficits, the benefits of monetary union, such as lower interest rates and the elimination of exchange rate risk, have not always been used wisely, and have tempted some countries to live beyond their means. now that the financial crisis has revealed the unsustainability of this development, the need for domestic adjustments is becoming more and more apparent. given this, attempts to blame germany for problems in those countries and policy recommendations of symmetrical adjustment needs are questionable. rather, the adjustment process that germany underwent in the decade preceding the financial crisis and which i described earlier may serve as an example. this is not to deny that major challenges for economic and fiscal policy in germany remain. but instead of artificially propping up demand, economic policy should strive to enhance the framework for economic growth. to that end, obstacles to a market - induced and smooth reallocation of resources have to be removed, which would facilitate the necessary adjustments to the changed external environment. three areas of policy action are key going forward : firstly, deregulation to abolish barriers in the services sector might strengthen domestic demand and thus broaden the basis for german economic growth. secondly, with respect to the labour market, important adjustments in the area of temporary and short - term contracts have already been implemented in order to combat high structural unemployment after the last recession. this success, however, should not be jeopardised by a partial reversion of past labour market adjustments. on the contrary, broader labour market flexibility is desirable in order to facilitate domestic reallocation of workers to more profitable sectors. thirdly, the contribution fiscal policy can deliver to enhancing the framework of economic growth – the rapid consolidation of public finances –

currently do omo but you will continue to transact omo with our treasury department. the bsp will conduct consultations and briefings with you and other stakeholders ( possibly starting next month ) before we commence conducting omo using the irc system in the second quarter of 2016. in our pursuit of financial stability, we will continue to actively assess evolving market conditions while performing stress tests and network analysis. we have an uncompromising policy focus on mitigating the build - up of what we refer to internally as “ c2l2 ” ( c - l - 2 ) or the risks of contagion, concentration, leverage and liquidity. we put ourselves to be thought leaders in global and regional initiatives. this includes work on financial inclusion, financial literacy, and consumer protection as well as the integration of the regional financial market, including the requisite capacity building initiatives. we support the principles espoused by global and regional reforms but we do so in the form that is best suited for our requirements. we continue to actively engage other government agencies through the financial sector forum and the financial stability coordination council, and pursue interagency collaboration, for example, with da / dar and hlurb for agri - agra and housing issues, while openly collaborating with private sector entities such as the six organizations represented tonight. final thoughts it is clear that we all desire to be stronger in this increasingly interconnected yet fluid world. in doing so, however, we need to go beyond the confines of trade blotters, budgets, and bottom lines because financial markets “ draw ” a much more intricate picture on a canvas that is much larger than one ’ s balance sheet. for certain, how things “ hang on balance ” is not a trivial quest because there are many stakeholders and because financial risks evolve, comingle and recast themselves in a dynamic form. you have heard me say, year after year, at your general assembly that the overall picture is not simply the sum of each market player ’ s position. there are material risks that knowingly or unknowingly fall in between desks or may look benign on everyone ’ s balance sheet. but when these risks fester, they eventually materialize as systemic difficulties. in this light, i want to assure you that regulatory interventions do not simply serve the purpose of making the days of market players challenging. contrary to rumors, the bsp takes pains in crafting an enabling environment because we are able to see the intricacies of the