increases in activity and employment have been accompanied by very low inflation rates. the fall in oil prices has prompted declines in the general level of prices over much of the past year. yet core inflation, the indicator that excludes energy and fresh food prices, has moved on a rising course over the year. and while still at moderate levels, this indicator ’ s recent trajectory suggests the risks of entering an overly prolonged period of very low inflation have progressively been dispelled. while in july the overall price index posted growth of 0. 1 %, influenced by fuel prices, inflation at the end of the year is expected to be around 1 %. in any event, the still - high spare capacity in the economy presages a gradual recovery in inflation over the next two years. the factors underpinning the recovery the path of recovery of growth and employment has essentially been underpinned by the restoring of macroeconomic and financial equilibria, which were severely eroded in the crisis. progress has been visible in the correction of the external imbalance, the deleveraging of households and firms, the redressing of fiscal balances towards levels more compatible with the sustainability of public finances and the restructuring and consolidation of the banking sector. unemployment, too, is showing clear signs of a correction. the reforms undertaken within spain, along with the headway in economic and monetary union and the application of the highly expansionary monetary policy by the ecb, have proven key to restoring confidence and providing for the progressive absorption of the imbalances. by way of illustration, the proportion of spanish public debt held by nonresidents has risen from 30 % in 2012 to 44 % at present, an increase indicative of the improved confidence in our economy, but also of its dependence on the perception abroad of the soundness and continuity of our recovery. despite what has been achieved in growth, employment and restoring equilibria, we are far from having overcome all the factors of vulnerability. doubts over the continuity of the macroeconomic, fiscal and financial rebalancing drive might curtail and lead to backtracking from these achievements. we must not forget that the legacy of the crisis is still burdensome. our unemployment rate remains above 22 % ; households and firms are speedily reducing their high debt, but public debt as a proportion of gdp has increased by over 60 pp since 2007 ; and the economy ’ s financial dependence on the external sector remains high, with a net debtor position of close to

transformations in economic and financial relations globally force us to re - think the design of economic policies in order to better contribute to the progress of our society. in particular, these forums are instrumental for central banks in its role of providing guidance for economic policies that are not in their mandates. let me add that in order to exert this role of assessing public policies, central banks need to be granted with political and operational independence, in order to provide recommendations free from political pressure or vested interests. the theme of this conference, financial integration and inclusive development, is particularly timely at this current juncture of the world economy. global economic growth is at its lowest level since the global financial crisis, partly as a consequence of the high level of uncertainty surrounding trade and international relations. this weakness of the global economic landscape is adding to the new challenges that have emerged over the last decades : population aging, migration, security threats, the emergence of new economic and political powers, and climate change, to mention only some. and this evolution has taken place in an era of increasing globalization, that is being threatened by the emergence 2 / 3 of protectionist measures, and of digitalization and rapid development of new technologies. together, these developments constitute a new frontier for policies that make it necessary to promote mutual understanding and make extensive coordinated efforts in the field of policies. in order to preserve the benefits derived from financial interconnectedness and technological innovation, it is now of the essence to put in place an internationally agreed response that allows to achieve the benefits of innovation while ensuring the mitigation of its potential risks. policy - makers have the responsibility to support the research and analysis to base to foster growth and fight inequalities. in this conference we are going to debate on a number of challenges that our countries are currently facing : from technological innovations in finance to migration flows in search for better opportunities, going through increasing financial interdependences or the need of boosting financial education. i have no doubt that the quality of the discussions we have today will allow us to deepen our understanding of these challenges and, hopefully, allow us to draw some useful conclusion in terms of economic policy. i leave the floor now to mr. isidro gonzalez, deputy secretary general of the union for the mediterranean, thanking him as well as you all for your presence here today, and thanking mr. senen florensa, president of the executive committee of iemed, for the cooperation in the organisation of this event. now