Regarding the second pillar, much clearer signals of a further reduction of inflationary pressures from the demand side have accumulated over recent weeks. Euro area real GDP growth will be weak in the second half of 2001. This is to be seen against the background of the ongoing weakness of the world economy, which depresses the demand for euro area exports.
Every central banker faces the challenge of being the guardian of the currency, and therefore an anchor of stability and confidence in a very demanding period. Mario Draghi needs no particular advice from me. He is a long-standing member of the ECB’s Governing Council and has been closely involved in all the decisions we have taken over the years. 11.