remain sound. profitability has been sustained, employment growth has been robust and the unemployment rate has fallen to levels not seen for 25 years. these factors are also reflected in the december 2007 eurosystem staff macroeconomic projections. annual real gdp growth is projected to lie in the range of 2. 4 % to 2. 8 % in 2007, and be between 1. 5 % and 2. 5 % in 2008, and between 1. 6 % and 2. 6 % in 2009. in comparison with the september ecb staff projections, the range projected for real gdp growth in 2008 has been revised slightly downwards, whereas for 2007 the new range lies within the upper part of the previous one. available forecasts from international organisations broadly confirm this outlook. the scenario of sustained real gdp growth broadly in line with trend potential is based on the expectation that the global economy will remain resilient, with the slowdown of economic growth in the united states partly offset by the continued strength of emerging market economies. external demand should therefore provide ongoing support to euro area exports and investment. consumption growth should also contribute to economic expansion, in line with developments in real disposable income, as continued employment growth provides supportive conditions. that said, in view of the potential impact of ongoing financial market volatility and re - pricing of risk on the real economy, the level of uncertainty remains high. in the governing council ’ s view, the risks surrounding this outlook for economic growth lie on the downside. they relate mainly to the potential for a broader impact from the ongoing reappraisal of risk in financial markets on financing conditions and confidence and on world and euro area growth, possible further oil and commodity price rises, as well as concerns about protectionist pressures and possible disorderly developments owing to global imbalances. 50 as regards price developments, according to eurostat ’ s flash estimate, the annual hicp inflation rate increased sharply again in november 2007, to 3. 0 % from 2. 6 % in october. oil prices have risen strongly in recent months, and food prices have increased substantially, reflecting higher global demand. in addition, as emphasised on previous occasions, we are currently in the midst of a period in which unfavourable effects from energy prices are having a strong upward impact on annual hicp inflation rates, owing to the marked decline in oil prices a year ago. looking ahead, the hicp inflation rate is expected to remain significantly above 2 % in the coming months, and

these include : the appointment of a chief operating officer, enhancing the communications function, encouraging the culture of debate within the bank, strengthening the role of research, and continuing to invest in leadership and management capabilities. these recommendations make sense and have our support. we will now develop an implementation plan under the leadership of a small team of experienced people. to conclude, i would like to again thank the review panel for their work. it is not often that central banks are reviewed, so it is important the job is done well and thoughtfully, and that the process is constructive. this is exactly what has been done here. it also 2 / 3 bis - central bankers'speeches makes sense, as the panel recommends, for regular reviews to be conducted every five years. as the panel notes, the review has been about strengthening a well - functioning institution and ensuring the bank is in a good position to meet the challenges of the future. monetary policy has become more complex, as have the bank's operations in the banking and payments areas. the recommended changes in this review will help us do our job in this changing world and are consistent with our internal staff values, including serving the public interest and achieving excellence. i look forward to working with the government, the parliament, the board and the bank's staff on how we can best live up to those important values. i am happy to answer your questions. 3 / 3 bis - central bankers'speeches