Output growth has been solid in 2005 and 2006 at average rates of around 5%. Inflation decreased considerably and the renewal of some inflationary pressures in 2005 and early 2006 has apparently been temporary. Noticeable progress has also been achieved in fiscal consolidation, and fiscal balances in Southeastern Europe show moderate deficits or surpluses.
As the new requirements will have to be endorsed by the G 10 Governors and Heads of Supervision before their publication at the end of June, I will be involved as well. Last week the Basel Committee published a press release to announce that it had achieved consensus on the remaining issues so that I don’t expect that this endorsement could still prove problematic.