asset price misalignment, which may need to be addressed by policy. in addition, financial market indicators have the potential to reflect developments at critical stages of the transmission process. this is due to the fact that financial markets in general adjust faster than goods markets, and their prices are timelier and less prone to measurement error. today ’ s workshop will give us the chance to discuss these and many other issues. i am that sure my colleagues around the table would like to share their practical experiences so that we could have a better understanding of the financial market indicators suitable for emerging markets and how we as policy makers can best make use of them. let me now pass the chair to mr. eli remolona, head of economics for asia and pacific, bis.

55 - 64 would have to substantially exceed its annual average of 1. 7 % between 1996 and 2002 to achieve the employment target for older workers of 50 % by 2010. making the lisbon agenda a success therefore requires particular efforts in the field of labour market reform to open up additional employment opportunities. at the same time, further structural reforms need to increase the prerequisites for innovation, research and development, particularly by providing educational attainment levels adequate for labour market needs. furthermore, a continuation of reforms in capital markets, a removal of barriers to competition particularly in the service sector as well as further liberalisation in electricity, postal services and transport as envisaged in the lisbon agenda is needed. i would like to conclude this part of my speech with three remarks : first, trust in the course of structural reform as fostered by the lisbon agenda and a better understanding of the economic benefits structural reforms entail are conducive to raising consumer confidence and private consumption. it is thus indispensible to maintain trust in this course, and to keep commitments also in periods with slower growth. second, numeric targets seem to me currently the central measure to benchmark progress with structural reforms. as numeric targets increase necessary pressure for underperforming countries, it should be considered to strengthen this instrument. third, as we all know, the implementation of changes in long - grown relationships is always a difficult task. when asked for their willingness for reform in general, a large part of the population would probably signal a high degree of approval. but as soon as a concrete measure would harm the personal status - quo, only a minority would agree. the main challenge for the lisbon agenda ’ s success is thus to persuade the people of the long - term benefits of structural reform and to remove the scepticism with respect to short - term costs. in this regard, also the ecb plays its part in its communication on the benefits of structural reforms. 3. the impact of structural reforms on the conduct of monetary policy let me now turn to the discussion of the implications that the implementation of the lisbon agenda may have for the conduct of monetary policy in the euro area. the ecb has always stressed the importance of a swift implementation of structural reform agendas across the euro area. this reflects above all the firm belief that structural reforms enhance the welfare of the european citizens. but structural reforms also tend to facilitate monetary policy and increase its effectiveness. a more flexible economic environment helps the labour and product markets