inclusion of macro - prudential powers is a key element because as shown by the crisis, macro - and micro - risks can actually be mutually reinforcing. involvement of non - euro area member states a third important feature in the ssm is that national competent authorities of non - euro area member states have an option to participate in the ssm. thus the proposal extends to cover all member states. they can participate through establishing a close cooperation with the ecb. by establishing a close cooperation they need to adhere to the decisions taken by the ecb, if not the cooperation may be suspended or terminated. separation of monetary and supervisory functions, while benefiting from synergies another of the ssm regulation i would like to highlight relates to the principle of separation of the monetary and supervisory functions. the important role given to the supervisory board vis - a - vis the governing council is one of the various safeguards ensuring a clear separation between the monetary and supervisory function of the ecb. finally, the concentration of these new functions at the ecb implies a higher level of accountability. the council proposal also addresses the issue by creating a review panel of the ssm decisions from a legal point of view and, in particular, by defining the accountability of the ssm before the european parliament. 4. main immediate tasks of the ssm one of the main priorities for the ecb during 2013 is ensuring the operationalization of the ssm, so that it can assume its responsibilities effectively and efficiently. building a strong centre creating a strong centre in a decentralised system such as the ssm, will be crucial to provide the ecb with the necessary means to ensure it will have the resources to effectively fulfil its functions without endangering its reputation. in this context, the articulation of appropriate decentralisation procedures through close cooperation arrangements with national authorities within the unity of the supervisory system will be essential. the knowledge and skills of the system ’ s human capital will contribute to creating a strong centre. therefore the recruitment of skilled and experienced staff, particularly banking supervisors, will be a priority. bis central bankers ’ speeches harmonising risk assessments an immediate task of the ssm will be a comprehensive review of the banks that will fall under direct supervision of the ecb. as foreseen in the regulation, this exercise should include elements of an asset quality review as a basis for a thorough solvency analysis. this review should be instrumental in identifying potential legacy problems. the treatment of legacy assets

through the financial system and are benefiting the real economy at large by ensuring very favourable financing conditions. at the december meeting, the governing council saw the need for the recovery to further mature and strengthen to ensure a sustained convergence of inflation rates towards levels below, but close to, 2 % over the medium term. for this to happen, financing conditions have to remain supportive, taking remaining uncertainties inside and outside the euro area into account. we therefore decided to safeguard the amount of monetary easing for the period ahead. against this background, we decided to extend the asset purchase programme beyond march 2017, with the intention of conducting our purchases until the end of december 2017 or beyond, if necessary, and in any case until the governing council sees a sustained adjustment in the 1 / 4 bis central bankers'speeches path of inflation consistent with its inflation aim. we will continue to purchase assets at a monthly pace of €80 billion until march. starting from april, our net asset purchases will run at a monthly pace of €60 billion, and we will reinvest the securities purchased earlier under our programme, as they mature. this will add to our monthly net purchases. our december decisions strike a balance between our growing confidence that the euro area ’ s economic prospects are firming up, and – at the same time – the lack of a clear sign of sustained convergence of inflation rates towards the desired level. on the one hand, the evidence suggests that the acute deflation risks have disappeared and that inflation is set to pick up over the coming years. and contrary to a widespread perception, euro area economic conditions have also been steadily improving. euro area gdp growth has been solid in every quarter since the beginning of 2015, averaging 1. 9 percent in annualised terms. compared to 2013, there are 3. 5 million fewer unemployed in the euro area, a decrease by more than 18 %. and in the last quarter, the recovery has been broadening across sectors and across countries. indeed, the dispersion of value added growth across euro area countries and sectors has declined sharply and stands close to its lowest level since the introduction of the euro. but support from our monetary policy measures is still needed if inflation rates are to converge towards our objective with sufficient confidence and in a sustained manner. the pickup in headline inflation in december and in january largely reflects sizeable upward base effects and recent increases in energy prices. so far underlying inflation pressures remain very subdued and are expected to pick up only gradually as we go on. this