Before explaining the discussions, the basic mechanism whereby monetary policy takes effect through financial markets needs to be recalled. As I said earlier in relation to the case of U.S. and European money markets since the bankruptcy filing of Lehman Brothers, financial institutions cannot take risks when there are concerns over funding in the market.
In the current situation, characterised by subdued economic growth and low confidence, structural reform and a steady and reliable course of fiscal policy, in line with the European fiscal framework, are of the highest priority. We are now at your disposal for questions. 2  BIS Review 32/2003