of banks strengthened where needed. however, considerable progress has been made since last summer in improving the funding situation of banks, in strengthening the domestic deposit base in stressed countries and in reducing reliance on the eurosystem as reflected in repayments of the three - year ltros. further decisive steps for establishing a banking union will help to accomplish this objective. in particular, in the light of recent experience, we must emphasise that the future single supervisory mechanism and a single resolution mechanism are crucial elements for moving towards re - integrating the banking system and therefore require swift implementation. to sum up, taking into account today ’ s decision, the economic analysis indicates that price developments should remain in line with price stability over the medium term. a cross - check with the signals from the monetary analysis confirms this picture. as regards fiscal policies, euro area countries should build on their efforts to reduce government budget deficits and continue to implement structural reforms, thereby mutually reinforcing fiscal sustainability and economic growth. fiscal policy strategies need to be complemented by growth - enhancing structural reforms. such reforms should be ambitious and broad - ranging, encompassing product markets, including network industries, labour markets and the modernisation of public administration. to support employment, wagesetting should become more flexible and better aligned with productivity. these reforms will help countries in their efforts to regain competitiveness, set the foundations for sustainable growth and support the return of macroeconomic confidence. we are now at your disposal for questions. bis central bankers ’ speeches

a sizeable capital exporter ( a surplus would also be expected because of its weak cyclical phase ), the current account surplus of the euroarea has averaged only $ 17 billion annually since 2000, compared to $ 26 billion for china and $ 80 billion for the dragons, whose per capita income is still relatively low. of course, if euroarea growth was faster, this aspect would not be so important since more market determined exchange rates in these countries would probably only add not more than one quarter of a percentage point to euroarea growth. however, with average growth in the euroarea of less than 0. 7 % in 2002 / 2003, even a small stimulus matters. in this context i would like to say something about the greek economy itself. unlike our partners in the eu, we are now enjoying strong growth that will stay close to 4 percent this year as in the last five years. admittedly, the stimulus from the forthcoming olympic games and the inflow of eu structural funds has contributed to the good economic performance ; but i think it is true to say that endogenous factors have been significantly more important. public expenditure on the olympic games, amounting to just over 1 % of gdp in the last few years, has also had the negative effect of raising the fiscal deficit to about its upper limit of 3 %, set by the european treaty, and has also intensified inflationary expectations. as a result external competitiveness will again probably be eroded somewhat in 2004, in turn restraining gdp growth. as for financial support from the e. u., it is worth mentioning that net inflows from the e. u. have fallen from over 5 % of gdp at the end of 1990s to 2. 8 % in 2003. the greek economy has succeeded in absorbing this negative shock without strains and the probable further decline in net e. u. funds, after 2007, which is related to e. u. enlargement, does not pose a serious threat to growth. against these negative influences there is an array of positive factors, starting from the fundamental changes in the economy that have occurred in the last fifteen years and are easily visible to the naked eye. not only is the economy functioning more efficiently, and reflecting a high investment - to - gdp ratio of 26 %, the capital base both in the private and public sector has broadened and deepened, but also business initiative is on the rise, and the factors in combination with the removal of exchange rate risk and low