risk premium into the prices quoted to maltese businesses. the insurance provided by the discipline of emu, and the high level of intra - eu integration should reduce this perceived vulnerability and, with that, the risk premium. this is conducive to lower interest rates and to access to financing on more favourable terms. a related advantage is the improved marketability and acceptance of collateral. maltese lira assets are not considered sufficiently liquid by foreign lenders in view of the thinness of domestic financial markets. many smes are consequently either denied foreign financing altogether, or offered prohibitive rates. this constraint should ease considerably with the adoption of the euro, as the redenomination of domestic assets into euro will improve the marketability of the collateral offered by local businesses. further benefits should accrue to business from the eventual linkage of the domestic payment system to the eu ’ s target system. by linking together the national systems of member states with the payment mechanism of the ecb, target allows payments in euro to be effected much faster, potentially improving liquidity conditions in the financial sectors of participating countries while lowering the processing costs of cross - border payments in euro. the challenges posed by the single currency thus far we have reviewed the opportunities inherent in membership of the euro area. as might be expected, however, membership will also present new challenges. for example, while it places the economy in a better position to compete internationally, it exposes businesses to additional competitive pressures. for a start, customers will be better able to compare local prices with comparable prices abroad and will increasingly question price differentials. some operators will, of course, benefit from lower procurement costs, but others might find it difficult to survive. it is, therefore, advisable for pricing strategies to be reassessed well in advance of the date of the actual euro changeover, especially where price is an important variable in marketing strategies. in the same manner that the euro will facilitate price comparisons, other monetary variables such as cost per unit, average wage, annual sales volumes, administrative expenses and profits will also become easier to compare across countries. in other words, the single currency will expose the performance of maltese businesses to a much more detailed scrutiny than they are accustomed to. from a broader macroeconomic perspective, it could also be argued that just as the euro will enable domestic operators to reap the full benefits of the single market, a higher level of integration with the eu could also make the maltese economy more susceptible to developments abroad

mark carney : summary of the latest monetary policy report opening statement by mr mark carney, governor of the bank of canada, at the press conference following the release of the monetary policy report, ottawa, 18 april 2012. * * * good morning. tiff and i are pleased to be here with you today to discuss the april monetary policy report, which the bank published this morning. the profile for global economic growth has improved since the bank released its january mpr. europe is expected to emerge slowly from recession in the second half of 2012, although the risks around this outlook remain high. the profile for u. s. growth is slightly stronger. this reflects the balance of somewhat improved labour markets, financial conditions and confidence on the one hand, and emerging fiscal consolidation and ongoing household deleveraging on the other. economic activity in emerging - market economies is expected to moderate to a stillrobust pace over the projection horizon, supported by an easing of macroeconomic policies. commodity prices remain elevated owing to improved global economic prospects, supply disruptions and geopolitical risks. in particular, the international price of oil has risen further and is now considerably higher than that received by canadian producers. if sustained, these oil price developments could dampen the improvement in economic momentum. overall, economic momentum in canada is slightly firmer than the bank had expected in january. the external headwinds facing canada have abated somewhat, with the u. s. recovery more resilient and financial conditions more supportive than previously anticipated. as a result, business and household confidence are improving faster than forecast. the bank projects that private domestic demand will account for almost all of canada ’ s economic growth over the projection horizon. household spending is expected to remain high relative to gdp as households add to their debt burden, which remains the biggest domestic risk. business investment is projected to remain robust, reflecting solid balance sheets, very favourable credit conditions, continuing strong terms of trade and heightened competitive pressures. the contribution of government spending to growth is expected to be quite modest over the projection horizon, in line with recent federal and provincial budgets. the recovery in net exports is likely to remain weak in light of modest external demand and ongoing competitiveness challenges, including the persistent strength of the canadian dollar. the bank projects that the economy will grow by 2. 4 per cent in both 2012 and 2013 before moderating to 2. 2 per cent in 2014. the degree of economic slack has been somewhat smaller than anticipated, and the economy is