Let me now turn to the matter of the challenges facing Greece with respect to the completion of the adjustments required to prepare the economy for the exigencies of monetary union. Three interrelated issues are important in this respect.
First, the need to sustain efforts to achieve and maintain a sound budgetary position consistent with the Stability and Growth Pact, and a speedy reduction in the still high debt-to-GDP ratio. Second, the need to strengthen Greece’s ability to respond to “asymmetric” shocks, i.e. negative shocks affecting the entire national economy and only that economy.