roskilde bank's operations. representatives of any association or similar organisation that may be established by old shareholders in roskilde bank to safeguard a significant part of their interests would be welcome to participate in regular meetings to discuss the activities of the new bank and the discontinuation process in general. i would like to emphasise that this is indeed an extraordinary situation. roskilde bank suffered from very substantial exposure to the property market, unfavourably combined with a lenient credit culture. as a result, the bank was unable to survive on its own, and we had to step in to ensure responsible discontinuation.

how rapid and strong their effect, if any, is. this applies regardless of whether such measures are aimed at productivity or incentives to work more. for some time, the number of people in employment relative to the number of 20 - 64 - year - olds has been close to a level not previously seen, even in an international context. one option could be to increase average working hours, which are not high by historical or international standards. however, working hours are determined by complex interaction between individual choice, collective agreements and cultural norms. even if it was possible markedly to change the incentives to work more – e. g. through a sizeable reduction of the marginal tax rate – this would take effect with a lag, and we have very little knowledge about how long this lag would be. moreover, uncertainty about the ultimate impact is considerable. if the marginal tax rate would be reduced to provide an incentive to work more, and this would be done by way of fiscal easing, i. e. not fully financed, it is very unlikely that the capacity - enhancing effects would balance the additional increase in demand. obviously, a lower marginal tax rate should not necessarily be unfinanced. it could be implemented as part of an actual tax reform and funded by increasing the tax base, i. e. by reducing existing tax deduction options and reducing selective tax benefits. as a main rule, reduction of tax deductibility in itself entails structural improvement, as tax deductibility often provides an incentive to engage in economic activity where the motivation is tax savings rather than other economic advantages. but there are considerably fewer tax deductibility options left to weed out than there used to be. another way to finance a lower marginal tax rate is to reduce ( growth in ) public sector spending. in that case, the net impact on capacity pressures in both the short and long term would depend on the actual tax and expenditure cuts introduced. if funding is achieved by reducing public sector spending, this can be expected to have a dampening effect, in net terms, on overall demand in the economy. this is mainly because the import share of public consumption is lower than the import share of private consumption triggered by lower taxes. as regards the issue of labour market pressure, the short - term question is whether the type of labour released via e. g. lower growth in public sector spending can fully or only partially make up for the extra labour required when lower income taxes push up private consumption. the lion