gaston reinesch : how to achieve stronger growth in the eu? opening remarks by mr gaston reinesch, governor of the central bank of luxembourg, at the eurofi financial forum 2015, luxembourg, 9 september 2015. * * * ladies and gentlemen, distinguished guests, at the outset, i would like to thank eurofi and its president jacques de larosiere for inviting me to make the opening remarks to this afternoon ’ s debates on “ how to achieve stronger growth in the european union ”, a highly topical subject, to say the least. i will focus on the euro area and structure my remarks in two parts. first, i will touch upon the economic outlook in the euro area. i will do so in light of the european central bank ’ s ( ecb ) staff euro - area macroeconomic projections, which have been published last week, referred to hereafter as the “ staff projections ”. second, i will proceed with a broad overview of the issues and challenges of longer term growth in the euro - area and put forward some avenues for reflection and discussion. the information available from the staff projections indicate a continued though somewhat weaker economic recovery and a slower increase in inflation rates compared with previous expectations. as far as inflation is concerned, the staff projections foresee an annual harmonized index of consumer price inflation ( hicp ) of 0. 1 % in 2015, 1. 1 % in 2016 and 1. 7 % in 2017. 1 in comparison with the june projections, 2 the outlook for inflation has been revised down, largely owing to lower oil prices and, to a much lesser extent, a slower closing of the negative output gap. furthermore, taking account of the most recent developments in oil prices and recent exchange rates, there are downside risks to the september staff inflation projections. concerning the economic situation, recovery is expected to continue, albeit at a somewhat weaker pace than earlier expected, reflecting in particular the slowdown in emerging market economies, which is weighting on global growth and foreign demand for euro area exports. domestic demand should be further supported by the monetary policy measures of the ecb and their favorable impact on financial conditions as well as by the progress made in fiscal consolidation. moreover, the decline in oil prices should provide support for household real disposable income and corporate profitability and, thereby, enhance private consumption and investment. overall, this assessment is broadly reflected in the staff projections which foresee an annual real gdp growth of 1. 4 % in 2015,

. in response, we have taken a fresh look at our approach to banking regulation and supervision. in particular, we are developing our capacity to respond to banking crises in ways that serve the interests of new zealand. this includes policies that aim to ensure that foreign - owned systemically important banks can be run legally and operationally from new zealand on a stand - alone basis if and when needed. we are also working to ensure that there is as much coordination and cooperation as is possible between regulatory authorities both here and abroad during times of financial stress. “ we also have a brief to monitor the wider financial system for emerging signs of stress. the publication of our first regular financial stability report ( pdf 888kb ) is another step in raising awareness and debate around financial stability issues. “ banking policy should be part of a safeguard against rare, but costly, financial crises. we can think of it as a form of insurance : if the potential loss from an unforeseen event rises, it is appropriate to add a little more insurance cover. we believe that recent policy developments provide this extra cover, in ways that are consistent with our duty to promote the soundness and efficiency of the financial system. ”