expected to turn positive again in the coming months, and to remain at moderately positive rates over the policy - relevant horizon. at the same time, the latest information continues to signal an improvement in economic activity in the second half of this year. although this outlook remains subject to a high degree of uncertainty, we expect the euro area economy to recover at a gradual pace in 2010. the monetary analysis confirms the assessment of low inflationary pressure over the medium term, as money and credit growth has continued to slow down. against this background, the current rates remain appropriate, and we therefore decided to leave the key ecb interest rates unchanged. market expectations for inflation are in line with our assessment. in particular, medium to longer - term inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2 % over the medium term. let me make one remark on exchange rates. i have repeatedly been on record in saying that i appreciate the statements made by the us president, the us secretary of the treasury and the chairman of the federal reserve that a strong dollar is in the interest of the united states of america. i agree with this analysis entirely. i would add that i believe that the strength of the dollar within the set of floating currencies is in the interest not only of the united states, but of the entire international community. i noted with great interest the remarks made yesterday by chairman ben bernanke at the economic club of new york. he said : “ the federal reserve will continue to monitor these developments closely. we are attentive to the implications of changes in the value of the dollar and will continue to formulate policy to guard against risks to our dual mandate to foster both maximum employment and price stability. our commitment to our dual objectives, together with the underlying strengths of the us economy, will help ensure that the dollar is strong and a source of global financial stability ”. this is a very important statement by my colleague, with whom i have a very good relationship. we are fully aligned in this analysis. thank you for your attention.

. in addition to upholding past achievements, further reform efforts are needed across the euro area, as outlined in the 2015 countryspecific recommendations, which each year identify key objectives in tackling remaining vulnerabilities and rigidities. it is only through such reforms that we can avoid a build - up of new imbalances and bring growth rates back to levels that ensure prosperity and allow households and member states to grow out of their debt. improving the functioning of the labour market remains key in this respect, with a view to ensuring a rapid adaptation to shocks or structural change. this area remains an important challenge in portugal, as also mentioned in the 2015 country - specific recommendations. taking further action is all the more important, with high unemployment, according to the latest eurobarometer, being considered the main concern to the people of portugal. but we also need reforms that encourage firms to invest. investment raises both supply tomorrow and demand today. such reforms include measures that further improve the business environment. however, investment could also be helped by addressing the corporate debt overhang. for instance, increasing the efficiency of debt restructuring tools could disburden still viable companies and thereby facilitate their investment plans. the european semester, in which these country - specific recommendations have been issued, should be a good framework to push for such a new effort. however, the countryspecific reform recommendations, as just indicated by the commission, have so far hardly or not at all been acted upon by member states. stepping up the reform momentum is therefore essential. in this respect, i have noted with great interest that you will be discussing the national reform programme later today. indeed, greater ownership not only by national governments, but also by parliaments and bodies such as this one would be crucial for the european semester to gain more traction and yield better results. making economic and monetary union work in the long run these are efforts that should be undertaken by countries individually. but there is also work to be done collectively. most importantly, governments should work towards completing economic and monetary union ( emu ). emu remains an incomplete construction. and while steps have been taken to strengthen the economic governance framework and to make our financial markets safer, this incompleteness amplified the effects of policy mistakes in the run - up to the crisis and continues to leave emu fragile and its member states vulnerable to shocks. in principle, we know where the weak spots in our construction are. the five presidents ’ report provides a road map on how