well as in the euro area as a whole ( 1. 7 % and 1. 3 % respectively for year - on - year harmonised inflation rates in march ) have been decisively supported by our non - standard monetary policy measures. we are now following our central course of gradual normalization. and there is at present a high convergence in our views within the governing council : whether our net asset purchases stop in september or december is not a deep existential question. along with this clear sequencing of gradual normalisation, we also agree that our monetary policy will remain accommodative for an extended period of time. in particular, keeping a sizeable stock of assets is key for easing financial conditions over a long horizon by compressing term premia. so we are predictable, but we are not precommited. what could slow down this course of gradual normalisation? certainly not fiscal dominance : let me be crystal clear, nobody should expect us to delay a warranted monetary normalisation in order to accommodate the debt problems of any member state. instead, we should pay close attention to a possible cumulative risks scenario, the likelihood of which has increased recently : an adverse loop of protectionist threats, unfavourable exchange rate movements, and abrupt financial markets corrections. such a negative loop would tighten financial conditions, and deteriorate the growth outlook in the eurozone. our monetary policy stance would then have to be adapted, depending on the ultimate impact on inflation prospects. in any case, this cyclical expansion provides an appropriate timing for reforms, especially for those that may be costly in a downturn, such as reduction in public expenditures and labour market reforms. the growth and employment performances of other european countries [ slide 9 ] in recent years show that implementing deep reforms can have large payoffs. in spain, for instance, significant reforms were implemented between 2010 and 2012 to reduce the duality of the labour market, to increase labour flexibility for firms and to strengthen active labour market policies. there have been some short - term employment costs, but france would not have to face these costs in the current upturn thanks to the supportive medium prospects, and could enjoy major benefits from structural reforms. 2. this momentum is being harnessed to implement ambitious and consistent reforms. [ slide 10 ] 2 / 4 bis central bankers'speeches however, to take advantage from these benefits, there is a need for consistent structural reforms. the success of the reforms will indeed hinge on perseverance – as no

##i de finances pour 2025 ( budget law for 2025 ) x annexe au projet de loi de finances pour 2025 ( appendix to the draft budget law for 2025 ), operateurs de l ’ etat xi institut paul delouvrier, barometre 24e edition, december 2023 xii see for example, helene rey in les echos, les mysteres du vote populiste, 13 february 2020 xiii insee, le compte des administrations publiques en 2023, 5 november 2024 xiv insee, croissance, soutenabilite climatique, redistribution : qu ’ apprend - on des « comptes augmentes »?, 5 november 2024 xv villeroy de galhau ( f. ), france and europe : from crisis management to longer - term ambition, 21 april 2024 xvi oecd, in brief : how ’ s life? 2024, 5 november 2024 xvii eurostat, quality of life indicators – overall experience of life, november 2023 data xviii cepremap, observatoire du bien - etre, founded by claudia senik xix conseil d ’ analyse economique ( cae ), quelle strategie pour les depenses publiques?, july 2017 xx france strategie, pourquoi les depenses publiques sont - elles plus elevees dans certains pays?, july 2014 xxi european commission, efficiency estimates of health care systems, june 2015 xxii oecd, public spending efficiency in the oecd : benchmarking health care, education and general administration, february 2016 xxiii international monetary fund, spending efficiency and reforms : france, 28 february 2023 xxiv france strategie, ibid ; notably pages 2 and 3 concerning methodological questions related to “ efficiency frontiers ” xxv including pension, healthcare, family, unemployment and personal housing benefits xxvi the proportion of the population attending school is 23 % in france compared with an average of 20. 5 % for the euro area as a whole xxvii cour des comptes, restaurer la coherence de la politique du logement du logement en l ’ adaptant aux nouveaux defis, november 2021 xxviii cour des comptes, assurer la coherence de la politique du