it - and it - enabled services, to help us better capture the broad picture of current developments. our department of economic statistics has used these surveys to more effectively monitor our transactions with the rest of the world. this, in turn, has enabled the bangko sentral to assess current and prospective developments in both capital flows and exchange rate movement, as well as the country ’ s vulnerability to possible external shocks. on the other hand, universal and commercial banks remain our reliable partners in monitoring foreign exchange transactions, including remittances, that pass through their channels. finally, we also acknowledge our partners who provide valuable support to our various advocacy programs on financial literacy for microfinance entrepreneurs as well as overseas filipinos and their families. at the end of the day, our economy stands to benefit from our fruitful partnership – the same partnership that helps us keep the philippine financial system resilient in the midst of global financial turmoil and economic slowdown. let us therefore resolve to find new ways to enhance and strengthen our partnership so that together, we can further improve the quality of philippine statistics that provide the basis for national policies and programs. on behalf of the bangko sentral, i thank all of our respondents and stakeholders who have been our faithful partners through these years. all of you can rightfully claim that you have also served our people and our country by sharing your time and information with us. with your support, the bangko sentral will continue to craft and implement responsive monetary and banking policies. maraming salamat po and congratulations to all awardees! mabuhay ang pilipinas!

increasing consumer welfare and job opportunities. turning now to labour markets, also here progress has been rather uneven across areas. a number of countries have lowered marginal tax rates in order to make their tax systems more employment friendly. some progress has generally also been made with the introduction of more flexibility in working contracts and practices. in many other areas, however, important reforms have not yet got off the ground. for instance, few changes have been made regarding employment protection policies in euro area countries, which remain among the strictest in the industrial countries. also, reforms aiming to simplify and limit unemployment benefit systems and thereby enhance employment growth have only slowly progressed in almost all euro area countries. the emergence of skill shortages and tight labour markets in several euro area countries shows that structural problems still remain and need to be solved. the euro area could use its potential much better, as is illustrated by its relatively low labour force participation. whereas, in the euro area, the labour force participation rate was 67 % in 1999, it amounted to 77 % in the us. all in all, we see that some traditional hurdles to market flexibility and competition are slowly being removed, but as regards the current state of affairs in the euro area there is certainly still plenty of scope and urgent need for improvement. structural reforms are of paramount importance not only for raising the growth potential of the economy but, most importantly, for increasing employment prospects in the euro area. reasons to be optimistic regarding the long - term prospects of the euro area let me now explain why i am rather optimistic regarding the future development of the euro area economy. the euro area is already highly integrated in economic terms owing to the creation of the single currency and single market and further progress in this respect is ongoing. this is a good starting point for dynamic economic development. my optimism is grounded in particular on the transformation we have witnessed over the past years, following the remarkable decision in favour of the single market. the successful establishment of the euro and the ecb, which together with the single market, have created a new economic entity, is evidence of the ability of europe to implement far - reaching reforms which are well - designed and underpinned by solid institutional structures. this creation of an entirely new economic entity is a substantial step forward. the euro will act as a catalyst for further reform in many areas. my optimism is further underpinned by the fact that the treaty sets out a durable anchor to guide economic decisions and to reduce economic uncertainty substantially by entrusting an independent