must involve less current spending, more investment and lower taxes, and above all it must continue ; we have ceased to accumulate debt, we have not begun to reduce it. we must tackle the structural weaknesses of our economy with greater determination. household consumption, eroded by the extraction of rents and held in check by uncertainty about the outcome of reforms deeply affecting people ’ s lives, must regain its vigour. never dealing with the problem of pensions definitively has a cost in terms of lost growth and lower consumption. these are attainable objectives if we all, each according to his own role and without tarrying to lament lost opportunities but drawing strength from awareness of the progress already made, can rediscover that sense of the common good that is essential to the enduring development of the country.

the intention to acquire control of a bank, repealed the rules on maturity transformation and the limits on banks ’ medium and long - term lending to firms, simplified the procedures for opening new branches, issued regulations for banks ’ covered bonds to create a broad and reliable market, and launched a review of all the supervisory legislation with a view to drastically reducing the number of authorizations. public confidence remains essential for the soundness of banks. the bank of italy verifies compliance with the rules on the transparency of banking and financial transactions and services ; the extensive checks it makes at intermediaries help to improve the standard of their dealings with customers. in addition to ensuring contractual correctness, the information banks give to customers must be clear and simple. in order to strengthen the real protection of savers and firms, we plan to review all the legislation on transparency and reduce the bureaucratic formalities. we have launched a new survey on the cost of bank current accounts, among other things to ascertain the importance of structural factors such as the impact of taxation and the excessive use of cash. the recently approved european directive on retail payment services opens the market to new operators, such as large retailers and mobile phone companies ; it increases competition, reduces costs, broadens the supply of services and lays the foundations for an integrated payment system in europe. the bank of italy will support an extensive application of the directive, which it is to be hoped will soon be transposed by parliament. * * * italy has transformed its banking system, begun to put its public finances in order and started to grow again. i have already reported on the progress made by the banking system. the role we played in this regard was neutral, not detached. we indicated the objective, not the actors : to aim for growth, abandoning the parochialism of the past and accepting the challenge of the market. this was where the transformation originated, not in the plans of the authorities. it is now essential that shareholders, households and enterprises clearly discern the benefits, in the shape of stronger banks ready to offer a wider range of services at lower cost. finally, the conflicts of interest that are ever present in the land of cross - shareholdings have to be resolved. the bank will follow all of these developments closely. a modern financial system does not tolerate the mixing of politics and banking. let the separation be clear - cut, and both will be strengthened. for the public finances once again to foster growth and not hamper it, their adjustment