the propensity for forms of saving more oriented to the long term, which in turn, suitably channeled, could facilitate the birth and growth of new enterprises with greater potential for innovation. reforms for growth policies that stimulate growth and economic dynamism expand the opportunities for young people. at the same time, the measures required to impart renewed impulse to growth will hinge on young people, easing the constraints on their contribution. removing the barriers to economic activity by lowering the cost of forming and running new enterprises will increase economic participation by the younger generation. new enterprises – in which economists place their hopes both for their high potential for innovation and for their capacity to stimulate efficiency in others – are mostly in the hands of entrepreneurs under the age of 40. and they tend to employ younger workers. but they will be more dynamic and competitive only if the work force has a suitably high level of educational attainment, which is an essential factor for growth in the “ knowledge - based economy. ” bis central bankers ’ speeches in the short term, macroeconomic policy measures can help to support growth. the composition of fiscal revenue can be modified, shifting the burden from levies on labour and productive activity to taxes on property and consumption. but above all the durable achievement of faster sustainable growth requires the structural reforms invoked for so long, broadly endorsed but as yet unimplemented : heightening competition in the product markets, especially in the service sector ; creating a more enterprise - friendly administrative and regulatory environment ; stimulating the accumulation of physical and human capital ; and raising the levels of labour market participation. such measures imply the substantially recasting the priorities and overhauling the modus operandi of public policy and administration. they must not be allowed, under the pressure of vested interests, to leave particular areas untouched. properly designed and communicated, these measures can have an immediate propulsive impact, enhancing business confidence and expectations, increasing the propensity to invest, and narrowing the spread on italy ’ s public debt. this is my last official speech as governor of the bank of italy. i end my term amidst a confused and dramatic situation at home and abroad on both the political and the economic fronts. when i took the floor in this venue six years ago, incidentally with a speech on growth, the situation was very different. its apparent tranquility, the generally indulgent, indeed admiring, attitude towards finance as the engine of growth concealed the seeds of the future disaster. italy bore none of

the blame for the crisis. but because of never redressed structural weaknesses italy was overwhelmed by it, penalized more than others, to the point that today, owing to its slowness in overcoming its own crisis, italy itself has become a cause of general crisis. nevertheless, the gravity and complexity of the situation must not make us forget our strengths. the first of these is our head of state, whom i wish to thank both personally as a citizen and institutionally on behalf of the bank of italy. he is a beacon, an inspiration, an example. the second strength comes from looking back on what has been accomplished. in these six years we have done a great deal. the bank of italy has made outstanding contributions at domestic and international level to the efforts to cope with the crisis, to revamping supervisory action, to the design and management of european monetary policy, to the formulation and implementation of the reform of european and global regulation. the autonomy of the bank of italy has been essential for all this. the bank ’ s autonomy is not an end in itself. it is an essential element of the way in which the bank exercises the powers and performs the duties defined in its statute, the italian constitution and the european treaty. in exercising these powers, the bank is called upon to safeguard the common good, for it is always perceived as impartial and not subject to external controls or interventions. the general council does not represent private interests ; it does not intervene in matters for which the bank or its top management is alone responsible ; it oversees the bank ’ s administration, its management and its choices. i now take leave of the bank with a peaceful mind, with, i believe, your warm feelings that will accompany me to frankfurt. the new governor epitomizes all the best that the bank has produced in its tradition of training authentic central bankers. the bank ’ s organization is sound and strong. but you too – italy ’ s banking foundations and banking system – have done much in these years to cope with the crisis by increasing resources, making sacrifices, changing operating rules, and aligning incentives with results, and you deserve ample credit for this. bis central bankers ’ speeches it is, then, from the strength of some of our institutions, from the awareness that we have succeeded in accomplishing things that seemed impossible, that we draw courage, security, the belief we will succeed. but we are experiencing a historical discontinuity. we are moving towards a new european pact,