working group. in particular, they approved the proposal to introduce a numerical rule – one twentieth of the debt - to - gdp ratio in excess of the 60 per cent ceiling – for the annual reduction of the debt. several days earlier the heads of state and government of the euro area had increased the effective lending capacity of the efsf to €440 billion and set that of the future esm at €500 billion ; they also decided that in exceptional circumstances both the fund and the mechanism could purchase euro - area countries ’ government securities on the primary market. the pact for the euro, with all these measures, widens the focus of attention to include macroeconomic imbalances, strengthens budget discipline in the area, and improves the mechanism of support for countries that get into financial difficulty. this was a necessary step to avoid dangerously sapping the community spirit that is the lifeblood of the euro. the measures are based on correct principles. the technical and negotiating effort involved has been substantial ; the results are encouraging but not yet sufficient. discussion of the pact will continue in policymaking fora ; deficiencies or points that are hazy can be corrected. fiscal policy surveillance needs to rely on more automatic procedures that limit the politicization of public accounting as far as possible and avert possible collusive conduct between countries. several other aspects of this complex reform of european governance still require attention and work. it is necessary, for example, to determine with precision all bis central bankers ’ speeches the “ relevant factors ” to be considered in assessing the adequacy of the pace of public debt reduction ; to identify the set of indicators serving to signal a situation of macroeconomic imbalance and the related critical thresholds ; and to establish the criteria for evaluating a country ’ s solvency. concerning structural policies to boost potential output and competitiveness, the pact, for the time being, relies on procedures based on peer pressure, which in the case of the lisbon strategy have not worked. the commitment of the national governments remains central. we must not forget a golden rule : increasing the economy ’ s growth potential and consolidating the public budget are national priorities first of all. governments should pursue them even independently of the european rules, for the good of their peoples, and should do so with special commitment in the countries farthest from these objectives. italy ’ s situation between 2008 and 2009, with the global crisis in full swing, italy ’ s budget deficit rose from 2. 7 to 5.

national bank of romania, as they capture appropriately the opinions of the real sector on some key issues, such as : ( i ) the most pressing problems that firms are facing in their activity ; ( ii ) the investment needs and priorities ; ( iii ) challenges raised by climate change and energy efficiency. the survey shows that firms in romania have become less optimistic regarding investment conditions for the year ahead. while this is a worrying trend, we are rather positive that romania will be able to overcome the main problem identified, the energy costs, in the near future. i would add here that the government has implemented several measures in this respect, such as electricity and natural gas price capping schemes, the compensation of the price of motor fuel / liter and caps on the firewood price. also, we are aware that the war in ukraine and the related sanctions will continue to generate considerable uncertainties and risks to the outlook for economic activity, through possibly stronger effects on consumer purchasing power and confidence, as well as on firms'activity, profits and investment plans, with an unfavorable impact on financing costs. in this current juncture, the balanced macroeconomic policy mix and the implementation of structural reforms, including the use of eu funds to foster the growth potential over the long term, are essential in preserving a stable macroeconomic framework and strengthening the capacity of the romanian economy to withstand adverse developments. with respect to the national bank of romania's responsibilities, we aim to anchor inflation expectations over the medium term, to bring the annual inflation rate back towards the target, in a manner conducive to achieving sustainable economic growth. the annual cpi inflation rate is projected to follow a gradual downward path, but to remain slightly above the variation band of the target also next year. the prudential and financial position of the romanian banking sector - the main source of finance to the economy - is adequate. however, the risks are rising both locally and internationally. the total capital ratio remained adequate, above the eu average, but the capital reserve shrank once with the marking to market, because of the fast - paced interest rate rise. asset quality continued to improve, with the non - performing loan ratio falling to european levels and the npl coverage by provisions staying at significantly higher levels than the european average ; profitability increased. yet, romania's banking sector faces a number of vulnerabilities : ( i ) expectations on a higher risk of default on private sector loans amid worsening macroeconomic conditions, the uncertainty