, but there is still a great deal left to do. these projects are good for europe and good for its citizens. why? because if we achieve a capital markets union, supported by strong infrastructure, we will unlock funding across the european union, creating stronger businesses, economic growth and greater financial stability. it will make the eu a more prosperous place. this morning i have touched on issues that will be discussed in much greater depth during all three of today ’ s conferences. i would like to take the opportunity now to wish you all a very enjoyable day, with many thought - provoking discussions and seminars. just before i close, i would like to repeat what i said earlier this week in paris : that i am deeply shocked by those atrocious attacks. i, again, express my solidarity, my compassion, and my sincere condolences to the families and friends of the victims. i would also like to mention that we should shy away from drawing premature conclusions about whether the terror attacks will have any economic impact. we have no indication of any economic pessimism as a result of the paris attacks, let alone weaker hard data. doom - andgloom talk is not warranted at this stage. thank you. bis central bankers ’ speeches

2. 3 % of gdp in 2009 – 10. third, a number of other factors show up in an expansionary fiscal stance, namely other discretionary measures, unexpected revenue shortfalls ( e. g. losses of income linked to the decline in asset prices ) and ongoing spending trends ( e. g. in public wages ), even as the trend of nominal gdp growth fell markedly. however, against the background of rapidly deteriorating fiscal positions, many euro area countries have started to implement their consolidation plans, which is reflected in the projected decrease in fiscal deficits for the coming year by the european commission. diverse developments in unit labour costs across countries. in the years prior to the crisis, the development of competitiveness diverged significantly across euro area countries. relative price adjustments have thus far been relatively moderate within the euro area, if there have been any at all. in fact, unit labour costs in the period 2008 – 09 have generally increased in deficit countries relative to those in the euro area as a whole. looking forward, such cost adjustment in the period 2010 – 11 is currently expected to be relatively limited. according to european commission forecasts, only ireland is expected to experience a significant improvement in its labour costs relative to those in the euro area. while the growth of labour costs is also expected to decline in all other deficit countries, it will in many cases remain close to, or even above, the corresponding rate for the euro area as a whole. therefore including competitiveness as an indicator for surveillance at the european level is key and already foreseen in the new eu economic governance framework. reform of the eu ’ s economic governance framework … european leaders recognize the need of a considerable strengthening of the economic model. at their meeting on 28 and 29 october 2010, the eu heads of state and government agreed on the reform of the european union ’ s economic governance. the proposals put forward by president van rompuy represent a strengthening of the existing framework for fiscal and macroeconomic surveillance in the european union. however, the governing council feels that they do not go far enough to be the quantum leap forward in the economic governance of monetary union that it has been calling for. 1 on the fiscal surveillance, we need an effective surveillance mechanism so that corrective policy action is taken in good time. and we need ambitious targets for the reduction of public debt towards the 60 % of gdp ceiling. on the broader surveillance of macroeconomic policies in the euro area, we need a new system of mutual surveillance in the