In my speech today, I will take the opportunity to discuss how the European Central Bank (ECB) has responded to the adverse effects of the financial crisis since 2007 and how this has not only prevented worse outcomes but has also contributed in the current environment to setting the stage for a sound recovery in Europe.
There are a number of reasons why the weaker real GDP growth in the second half of 2004 could be a transitory phenomenon. On the external side, growth in the world economy remains strong, supporting euro area exports. On the domestic side, investment is expected to continue to benefit from very favourable financing conditions, robust earnings and greater business efficiency.