the synergies between structural reforms and monetary policy. the spanish economy is a good example of a positive interaction and of the fact that, at least occasionally, reforms and policy are mutually reinforcing. after a period in the euro area with considerable stress combined with very marked segmentation in the credit markets, despite the ecb ’ s increasingly loose monetary policy, this interaction between structural reforms and a strongly expansionary monetary policy finally began to be felt in late 2013 and, naturally, in 2014, in any event in spain. unquestionably, some of the reforms launched in 2012 – 2013 contributed to relieving stress on the financial markets owing, above all, to their contribution to improving confidence. the improvement in public finances governance in the euro area no doubt played a key role in enhancing confidence. naturally, we may well ask what happens under this scenario to those economies that have witnessed a loss in competitiveness compared with those countries that have implemented reforms, for example those affecting the labour market and those which have provided, along with other factors, for the so - called internal devaluation. in this case, the relative loss of competitiveness has been offset by the monetary policy stimulus and its impact on national demand and on the external sector. the depreciation of the euro accompanying this policy which has, no doubt, partly been one of its consequences, has improved the competitiveness of the area as a whole, stimulating exports and overall activity. here we should recall that the euro area as a whole runs a most significant surplus on its transactions with non - euro countries. both excessive deficits and large surpluses entail risks and costs. accordingly, we believe there is justification behind the calls from several international institutions for those euro area countries that have the leeway to do so to implement policies conducive to the expansion of their domestic demand. i shall sum up with two ideas. first, that the de - anchoring of medium - term inflation expectations entails serious risks to financial stability and growth, risks that may be exacerbated in countries that have to follow a process of macroeconomic adjustment and deleveraging. second, that monetary policy and structural reforms, when simultaneously applied, may lead to highly positive synergies. and now a few words to make way for the address by my much - respected and dear friend vitor constancio. as well as having pursued a brilliant academic career, vitor constancio has been at the commanding heights of portuguese

our regions ’ economic cycles. although our financial systems have undoubtedly become more efficient thanks to innovation and globalisation, it remains to be seen as to whether progress has been made in terms of resilience. the central banks ’ role of keeping pace with these developments and assisting in periods of increased volatility highlights the importance of our co - operation and the resulting capital of trust. in this respect, i wholeheartedly thank all of the speakers and moderators here today, as they are further contributing towards strengthening this capital. according to a japanese proverb, “ with a friend at your side, no road seems too long ” ( « tabi ha michidure » ). governor fukui, i would venture to say that today ’ s celebration of the friendship between our two nations and more specifically between our two institutions will soon seem to us like a fleeting moment. however, i am also convinced that our institutions will continue the road together with constantly renewed pleasure derived from our productive and friendly exchanges. it is now with great pleasure that i give you the floor, governor fukui.