a comprehensive description of the new tender procedure will be issued during the course of next week. turning to today ’ s other meeting, the general council considered public finance developments in the eu. the general council also carried out its first annual review of the functioning of the erm ii, in accordance with article 16 of the erm ii agreement. finally, let me draw your attention to the calendar for meetings of the governing council and general council in 2001. a separate press release listing the dates as well as the related dates for the press conferences will be made available to you this afternoon. in this context, i should also like to point out that the press conference previously announced for 3 august 2000 has been cancelled.

the first few days of june, also reflecting expectations that robust economic growth will continue in the euro area. notwithstanding the recent appreciation of the euro, the extent and duration of its previous depreciation will still exert upward pressure on consumer prices. against this background, the outlook for consumer price developments had become less favourable prior to today ’ s meeting. in april 2000 inflation - as measured by the harmonised index of consumer prices ( hicp ) - was 1. 9 %, following 2. 1 % in march. in the immediate future, the strong rise in oil prices in may 2000 is pointing to renewed short - term upward pressures. looking further ahead, all available forecasts for consumer price inflation for this year and next are now higher than they were at the end of 1999. current projections of a rate of inflation of around 2 % in 2000 and 2001 are clear warning signals. in conclusion, with today ’ s decisions the governing council has acted in a forward - looking manner in order to contribute to the maintenance of favourable conditions for a lasting, non - inflationary economic expansion. this should help other economic actors to rely firmly on the maintenance of price stability in the medium term. they are also called upon to contribute to price stability and growth by means of appropriate wage settlements compatible with employment growth, structural reform and fiscal consolidation. at the current juncture, they are especially encouraged to press ahead with structural reform, and governments are particularly urged to avoid a pro - cyclical loosening of fiscal policies. this is particularly important in those countries where there is a risk of overheating. let me now give the floor to the vice - president to say a few words about the decision to implement a variable rate tender procedure as from the main refinancing operation to be settled on 28 june 2000. the switch to variable rate tenders in the main refinancing operations is not intended as a further change in the monetary policy stance of the eurosystem. the new tender mechanism is a response to the severe overbidding which has developed in the context of the current fixed rate tender procedure. for the purpose of signalling the monetary policy stance, the minimum bid rate is designed to play the role performed, until now, by the rate in fixed rate tenders. this change does not in any way rule out the option that, in the future, the main refinancing operations of the eurosystem may be conducted in principle as fixed rate tenders. a press release setting out