have adopted during the period of acute financial stress are temporary in nature and were designed with exit considerations in mind. some of the non - standard measures initiated in 2009 and early 2010 already have been phased out in view of improvements in conditions in some financial markets and taking the ongoing recovery of the euro area economy into account. achievements over the past 12 years before considering the challenges ahead, let me share with you for a moment a few thoughts on the track record of the euro. three elements are fundamental. first, the ecb has delivered what it is expected to deliver according to its treaty mandate that is price stability. indeed, euro area average inflation over the past now almost 12 years stands at 1. 97 %. this fully reflects our definition of price stability, namely our aim to keep annual inflation rates in the euro area below 2 %, close to 2 %. in this sense, the eurosystem over the past 12 years has operated as an anchor of stability and confidence, including in the more recent times despite the challenging environment created by the global financial crisis. second, and favourably reflecting on the credibility of the ecb ’ s monetary policy, inflation expectations have remained solidly anchored at levels in line with price stability. third, this success is firmly grounded in the full independence of the ecb from political influence, in its primary mandate to maintain price stability and in its transparent communication. the ecb ’ s two - pillar monetary policy strategy allows for a forward - looking and medium - term oriented course of action that is underpinned by a solid analytical framework. such framework must include a thorough analysis of monetary and credit developments, taking the monetary nature of inflation over the medium to longer term into account. such a comprehensive approach allows for well - informed and consistent decisionmaking, while being steady and looking through the short - term volatility. and fourth, as regards the external dimension of the euro, our currency has established itself internationally. in 2009, the euro represented around 30 % in the stock of international debt securities, and in the stock of global foreign exchange reserves. speaking of the external dimension of the euro, let me say a word on the present foreign exchange rate issues, domains where i would call for great prudence. there are two major topics. on the one hand, there is the relationship between the major floating convertible currencies of the industrialised countries, such as the dollar, the euro and the yen, the pound sterling, the canadian dollar. these currencies

##ing operations over the life of the respective tltro. for banks whose eligible net lending exceeds a benchmark, the rate applied in tltro iii operations will be lower, and can be as low as the average interest rate on the deposit facility prevailing over the life of the operation. the maturity of the operations will be extended from two to three years. fifth, in order to support the bank - based transmission of monetary policy the governing council decided to introduce a two - tier system for reserve remuneration in which part of banks ’ holdings of excess liquidity will be exempt from the negative deposit facility rate. separate press releases with further details of the measures taken by the governing council will be published this afternoon at 15 : 30 cet. the governing council reiterated the need for a highly accommodative stance of monetary policy for a prolonged period of time and continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a sustained manner, in line with its commitment to symmetry. 1 / 3 bis central bankers'speeches today ’ s decisions were taken in response to the continued shortfall of inflation with respect to our aim. in fact, incoming information since the last governing council meeting indicates a more protracted weakness of the euro area economy, the persistence of prominent downside risks and muted inflationary pressures. this is reflected in the new staff projections, which show a further downgrade of the inflation outlook. at the same time, robust employment growth and increasing wages continue to underpin the resilience of the euro area economy. with today ’ s comprehensive package of monetary policy decisions, we are providing substantial monetary stimulus to ensure that financial conditions remain very favourable and support the euro area expansion, the ongoing build - up of domestic price pressures and, thus, the sustained convergence of inflation to our medium - term inflation aim. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp increased by 0. 2 %, quarter on quarter, in the second quarter of 2019, following a rise of 0. 4 % in the previous quarter. incoming economic data and survey information continue to point to moderate but positive growth in the third quarter of this year. this slowdown in growth mainly reflects the prevailing weakness of international trade in an environment of prolonged global uncertainties, which are particularly affecting the euro area manufacturing sector. at the same time, the services and construction sectors show ongoing resilience and the euro