##lfil our monetary policy tasks. i also want to stress that, as a rule, the implementation of the regime for non - eu countries should continue to rely as much as possible on cooperation with, and deferral to, local authorities. let me also stress the crucial importance of finalising the adoption of key pieces of eu legislation – such as emir ii – well in advance of brexit, in order to be prepared for all possible contingencies, including a no - deal scenario. failing to do so could leave central banks and supervisors without the appropriate tools to handle the risks linked to systemic euro ccps operating outside the umbrella of eu regulation. naturally, we are available to provide any assistance in the context of these discussions. finally, we should not overlook the systemic cross - border implications of central clearing within the eu. we should therefore also strive to achieve enhanced supervisory convergence within the union. this would contribute to ensuring the integrity of the single market 3 / 4 bis central bankers'speeches and a level playing field, consistent with the objectives of the capital markets union. the european parliament can play a key role in furthering these objectives. conclusion let me conclude. our monetary policy measures have had tangible benefits for the euro area economy. further policy initiatives are however needed to reduce vulnerabilities, strengthen resilience in crisis situations and increase growth potential. only ambitious policies will deliver concrete benefits for the people of europe. this is also what our common history tells us. this year marks the 25th anniversary of the single market and of the maastricht treaty ’ s entry into force. those were bold decisions and we continue to benefit from them today : goods, people, services and capital can move freely and eu legislation ensures that commensurate rights and obligations apply throughout our union. with the creation of economic and monetary union ( emu ) we went further by adopting the single currency. it is in this spirit that i look forward to the coming months and the pivotal discussions we will have on reforming emu governance. thank you for your attention. i am at your disposal for questions. 1 www. ecb. europa. eu / press / key / date / 2018 / html / ecb. sp180205. en. html 2 see “ low inflation in the euro area : causes and consequences ”, ecb occasional paper series, no 181, january 2017. 3 see “ domestic and global drivers of inflation in the euro area ”, ecb economic bulletin

in the more volatile components, namely energy prices and, to a lesser extent, food prices. measures of underlying inflation – which we monitor for their information content concerning inflation dynamics – have remained subdued. inflation excluding energy and food was 1 % in january, and has ranged between 0. 9 % and 1. 2 % since april 2017. let me now focus on the factors behind these moderate inflation developments from a longerterm perspective. the recent period of low inflation may appear surprising from a cyclical perspective given that we have seen positive economic growth over the past four years, supporting a steady and gradual absorption of economic slack. this has raised the question of 1 / 4 bis central bankers'speeches which factors, cyclical or structural, may have played a role in the growth - inflation relationship. a comprehensive analysis by the eurosystem has concluded that adverse cyclical factors have played a crucial role in explaining low underlying inflation. these notably consisted of dampened economic activity and high unemployment in the aftermath of the sovereign debt crisis, and subsequently subdued foreign demand and low oil prices. 2 yet, these factors are of a temporary nature and should not affect inflation over a medium - term horizon, even though they might impact on the speed of adjustment in inflation. moreover, given the uncertainty surrounding the measurement of economic slack, the true amount may be larger than estimated, which could slow down the emergence of price pressures. this is particularly visible in the labour market, where wage growth has remained subdued despite strong employment gains. nonetheless, these factors should wane as the economic expansion continues and unemployment further declines. in fact, wage growth in the euro area has already picked up recently and the labour market is expected to improve further. on the structural side, globalisation may have reduced the responsiveness of inflation to domestic cyclical conditions but empirical evidence for the euro area is not clear - cut. 3 other potential factors include demographic trends or changes in behaviour triggered by technological developments, which may contain price pressures, for instance through increased price transparency. however, even if these factors are somewhat more persistent, they should still not exert a permanent impact on inflation. overall, the analysis indicates that the relationship between growth and inflation remains largely intact, even if it has temporarily weakened in recent years to the extent that the speed of adjustment in inflation towards our aim has been affected. looking ahead, we anticipate that headline inflation will resume its gradual upward adjustment, supported by our monetary policy measures. at the same time, uncertainties continue