- based equivalence and full deference mechanisms, based on compliance with international principles, can allow for cross - border activities that meet minimum standards of safety and soundness. where global ccps are systemically important for financial systems or currency areas, however, each authority should have the right and duty to ensure that imported risk is managed at least as diligently as its own standards would dictate. this is the core purpose of the revisions to the eu ’ s recognition framework for third - country ccps. the european commission and eu legislators have taken a balanced approach to ensure that this can be implemented in a pragmatic, flexible and efficient manner. the success of this framework, however, relies on enhanced cooperation between authorities. cooperation fosters trust, thus facilitating deference among supervisors to the extent possible. it also helps the authorities in implementing overlapping expectations based on different mandates in a coherent and mutually satisfactory manner. cooperation has, in fact, always been the ecb ’ s preferred approach to the oversight of financial market infrastructures ( fmis ). this cooperation should rely on two elements, as agreed at the international level : first, effective cooperative oversight arrangements and, second, crisis management groups to allow for mutual consultation in recovery and resolution planning. unfortunately, for several global ccps, these arrangements do not yet exist, or do not involve all relevant authorities, despite international commitments. these delays are a source of concern, not least as seven years have passed since the adoption of the pfmis5, and almost five years since international standards were adopted for both the recovery6 and resolution7 of fmis. i urge all parties involved to accelerate progress in this area. 2 / 5 bis central bankers'speeches the eurosystem needs to be able to conduct effective oversight cooperation is also indispensable for the second topic of today ’ s conference, namely ccp liquidity and the role of the central bank of issue. in europe, cooperation ensures that the ecb and the eurosystem can conduct effective oversight of euro - denominated clearing activities, wherever they may be established. in 2017 the ecb recommended an amendment to its statute to clarify its competence over ccps for the purpose of carrying out its monetary functions. 8 the ensuing debate among legislators and policymakers in the eu and beyond was marred by some misunderstandings, however, which i would like to dispel today. as you all know, some central banks are ccp supervisors. the ecb is not,

, if the outlook becomes less favourable, or if financial conditions become inconsistent with further progress towards a sustained adjustment in the path of inflation, we stand ready to increase our asset purchase programme in terms of size and / or duration. let me now explain our assessment in greater detail, starting with the economic analysis. euro area real gdp increased by 0. 3 %, quarter on quarter, in the third quarter of 2016, after recording a similar pace of growth in the second quarter. incoming data, notably survey results, point to somewhat stronger growth in the last quarter of 2016. looking ahead, we expect the economic expansion to firm further. the pass - through of our monetary policy measures is supporting domestic demand and facilitating the ongoing deleveraging process. the very favourable financing conditions and improvements in corporate profitability continue to promote the recovery in investment. moreover, sustained employment gains, which are also benefiting from past structural reforms, provide support for private consumption via increases in households ’ real disposable income. at the same time, there are signs of a somewhat stronger global recovery. however, economic growth in the euro area is expected to be dampened by a sluggish pace of implementation of structural reforms and remaining balance sheet adjustments in a number of sectors. the risks surrounding the euro area growth outlook remain tilted to the downside and 1 / 2 bis central bankers'speeches relate predominantly to global factors. according to eurostat, euro area annual hicp inflation increased markedly from 0. 6 % in november 2016 to 1. 1 % in december. this reflected mainly a strong increase in annual energy inflation, while there are no signs yet of a convincing upward trend in underlying inflation. looking ahead, on the basis of current oil futures prices, headline inflation is likely to pick up further in the near term, largely reflecting movements in the annual rate of change of energy prices. however, measures of underlying inflation are expected to rise more gradually over the medium term, supported by our monetary policy measures, the expected economic recovery and the corresponding gradual absorption of slack. turning to the monetary analysis, broad money ( m3 ) continues to expand at a robust pace, with its annual rate of growth increasing to 4. 8 % in november 2016, up from 4. 4 % in october. as in previous months, annual growth in m3 was mainly supported by its most liquid components, with the narrow monetary aggregate m1 expanding at an annual rate of 8. 7 % in november, up from 8. 0 % in october. loan