loan portfolio. this requires a set of strategic priorities fully shared by the institution at all levels and supported by robust analytical evidence. a balanced structure of revenues and expenses will effectively protect capital from the vagaries of the economic cycle. the prolonged period of low interest rates continues to constrain the income of the ibrd and calls for a continuous monitoring of efficiency - enhancing measures. the objective of the full implementation of the new organizational structure should be efficiency. efficiency must remain a guiding principle once financial sustainability is eventually achieved. all these challenges call for strategic prioritization and joint action. over the decades, the world bank group has consistently displayed a remarkable capacity to adapt to the changing external environment, redefining its mission over time and expanding its clientele and its tools. at this critical juncture we have no reason to doubt that it will once more rise to the level of the challenge. bis central bankers ’ speeches

keeping missions and humanitarian aid ( €0. 3 billion ). finally, €0. 2 billion is made available for short - term substitution of school personnel and around €0. 3 billion for changes to the domestic stability pact. additional provisions inserted when the decree was ratified have no final effect on net borrowing. the amendments that increase the deficit ( the easing of the constraints imposed by the domestic stability pact, the extension of the irap relief on labour costs to banks, financial companies and insurance companies, and the attenuation of the rules on sector studies ) are offset by new tax measures ( changes in the deductibility of expenses for company cars ) and by a reduction in current and capital spending. at the end of september, the forecasting and planning report further updated the projections for the public finances on a current legislation basis : revenue was revised upwards by more than €6 billion, while expenditure was reduced by nearly €3 billion. a decree law approved together with the forecasting and planning report allocated the improvement largely to finance a one - off measure for persons with low incomes who are unable to exploit all the income tax reliefs ( €1. 9 billion, accounted for in the official estimate as a reduction in revenue ) and a net increase in expenditure of €5. 4 billion. the technical note appended to decree law 159 of 1 october 2007 estimates that the measure entails an expenditure increase of €5. 9 billion – most of which for the advance payment of charges pertaining to 2008 – and expenditure savings of €0. 5 billion. the additional current expenditure amounts to €2. 1 billion, excluding the indirect effects on revenue, and the additional capital expenditure to €3. 8 billion. the decree ’ s effects in subsequent years will be negligible. measures to support the weakest households include the start of a public housing construction programme ( €0. 6 billion ), which will also be used for the modernization of existing dwellings. a further €0. 1 billion is allocated for the purchase of property to be leased for social housing. additional resources are granted for the 2006 - 07 public employment labour contracts ; adjusted for the indirect impact on revenue, the measure will cost around €0. 5 billion. some current transfers to the state railways ( €1. 0 billion ) and the national road agency ( €0. 2 billion ) are also brought forward. a further €1. 5 billion is allocated for other capital expenditure, mainly on the metropolitan transport systems of rome,