of governments to return to sustainable public finances, reduce risk premia in interest rates and thus support sustainable growth over the medium term. for all euro area countries, the 2011 budgets need to reflect the commitment to ambitious fiscal consolidation in line with countries ’ pledges under the excessive deficit procedures. any positive fiscal developments that may emerge, reflecting factors such as a more favourable than expected environment, should be exploited to make faster progress with fiscal consolidation. the urgent implementation of far - reaching structural reforms is essential to enhance the prospects for higher sustainable growth. major reforms are particularly needed in those countries that have experienced a loss of competitiveness in the past or that are suffering from high fiscal and external deficits. the removal of labour market rigidities and the strengthening of productivity growth would further support the adjustment process of these economies. increasing product market competition, particularly in the services sectors, would also facilitate industrial restructuring and encourage innovation and the adoption of new technologies. we are now at your disposal for questions.

we are now tilting our corporate bond portfolio towards issuers with better climate scores, with a view to removing the existing bias towards emission - intensive firms. although our current actions in relation to climate change are ambitious, they are still falling short of the paris objectives as they are not sufficient to ensure a decarbonisation trajectory that is consistent with carbon neutrality of our operations by 2050. three areas, in particular, require additional efforts. greening the stock of corporate bond holdings first, the ongoing decline in our balance sheet will visibly diminish the effect of some of our actions going forward. for example, for our corporate bond portfolio we are following a flow - based tilting approach where we adjust our reinvestments of corporate bonds based on a climate score that reflects issuers ’ carbon intensity, their decarbonisation plans and the quality of their climate - related disclosures. our main steering tool in this process is the tilting parameter – that is, the weight we put on the climate score in our benchmark allocation for new purchases. however, the tilting parameter lost part of its punch when we decided to stop net asset purchases ( slide 5 ). the forthcoming reduction in reinvestments will further significantly constrain the ability of a flow - based approach to decarbonise our corporate bond portfolio at a pace that is consistent with our climate ambitions. the decarbonisation of our corporate bond portfolio depends not only on our tilting parameter but also considerably on the rate at which the firms in our portfolio decarbonise their businesses. for example, assuming full reinvestment, we would achieve only half of the total decarbonisation of our corporate bond holdings by 2030 if firms were to stop taking steps to decarbonise their activities ( slide 6, left - hand side ). this effect depends to a significant extent on the actions of a few high - emitting companies ( slide 6, right - hand side ). together, this implies that by ending our reinvestments, the speed of decarbonisation of our portfolio would slow down substantially and be largely out of our control. a flow - based tilting approach is thus insufficient to achieve our goal. the paris agreement requires a stable decarbonisation trajectory in our portfolio irrespective of our monetary policy stance or companies ’ individual actions. we therefore need to move from a flow - based to a stock - based tilting approach for our corporate bond portfolio. this means that, absent any rein