of any given member state reflect principal choices of their internal policy and preferences of the entire society. stability and growth pact with the regard to the stability and growth pact, it is assumed that automatic stabilisation mechanisms shall function smoothly within the 3 % gdp scale. this threshold could be exceeded only in case of an abrupt or unexpected shock situation. additionally, the stability and growth pact aims at a balanced budget during the economic cycle. thus it presumes that one should not look for structural reasons if some member state experiences a long - term budget deficit or surplus. in my opinion, the stability and growth pact has performed its function very well in recent years. this is proved by the fact that most of the eu member states now have a much stronger fiscal position than in previous years. any major changes in the stability and growth pact are likely to cause additional insecurity and significantly affect the credibility of the entire framework. therefore i believe that the stability and growth pact should remain a cornerstone of the eu economic policy also in the years to come. further convergence of markets and various national economies should by itself prop the framework of the stability and growth pact. in addition to the potential approximation of the business cycles, the common market should create preconditions enabling each country to invest its savings effectively within the union. and even more importantly, harmonised and flexible commodity markets will help to reduce adjustment costs - and thus minimise the need to use budget stabilisation mechanisms during the short - term adjustment period. d. concluding remarks to date the european union faces several complicated but well - known economic policy problems from the recent past. estonia as the future eu member state must take this into account. it is not enough to be able to overcome challenges on the way to the european union. we must become equal partners to other european states, be able and willing to participate in the discussions on the monetary and fiscal policy issues, perceive estonia in europe and europe in estonia. today the european economic and monetary union within which 12 states have adopted the single currency, offers a historic chance to create a truly strong, flexible and efficient economic area. i believe that potentials of the single currency will be exploited in the best possible way. it would serve the interests of the current as well as future member states and the whole of europe.

time ever in about 20 years, the country ’ s inflation rate had grown above 30 %, a situation which appeared to be growing out of control. we are grateful to god that as this year draws to a close, the inflation rate is dropping from 30. 4 % in the month of october to 29 % in november and will certainly continue to drop. the uganda shilling has also appreciated to the dollar from a low adverse rate of almost 2, 900 / = in the month of october to a higher value of 2, 500 / = to date. we have registered several milestones towards achievement of set goals of customer satisfaction by aiming at zero tolerance for inefficiencies in the financial, monetary and payment systems which in turn have contributed tremendously towards regional harmonization. bis central bankers ’ speeches some of these milestones include, close and effective supervision of financial institutions to ensure financial soundness of the economy, launching of inflation targeting, upgrade of the rtgs from a uganda shilling based system to one that supports east african currencies, creation of a platform for cross - border payments, launching of internet banking, and facelift of the bou website. since the implementation of bank of uganda banking system ( bbs ) in july 2010, the bank has registered the following successes : considerable improvement in service delivery to our customers real time account balances and statements provision of daily government position holding 2 daily clearing sessions and improved financial reporting amidst all the above milestones, there have been significant challenges. “ to be tested is good. the challenged life may be the best therapist. ” ( gail sheehy ). during this year, we ( bou ) have featured in the media but we have seen the almighty god vindicate us from various accusations. we continue to thank god for the registered victory, the trust that he will take us through any other challenges and that through all this we are coming out more resilient and a better bou! this year, as part of our corporate social responsibility, we have committed to facilitate the running of a mobile dental clinic for hiv positive children that will be held at reach out mbuya clinic in kasaala on 17th december 2011. this clinic will be conducted by dr. brian rushaju who is here today with his wife and i thank dr. rushaju for partnering with us in this cause. i want to thank each one of you very candidly for your individual and collective contributions towards making this year a great success