In theoretical and scientific debate round-tables, efforts have been focused on identifying causes and taking measures to prevent recurrence of such events in the future. A new financial infrastructure is being designed. This is the context of this annual meeting, on whose focus is the identification of post-crisis challenges our region is faced with. Allow me to briefly address two or three of my personal opinions about this situation. Before the impact of international financial crisis, all countries in the region were involved in important reforms aimed at increasing the economic growth. At this stage, through necessary legal improvements and prudent development policies, there took place the opening of economies and the development of trade, increase in domestic and foreign investments, overall liberalization of markets and promotion of financial market development, to provide more qualitative and sustainable financial services to businesses and households. From the macroeconomic viewpoint, fiscal policies in the region are aimed at fiscal consolidation through revenue growth and greater investment-oriented public spending. Monetary policies, thanks to different exchange rate regimes, have generally kept consumer price rise on track and interest rates have followed a downward trend. However, the global financial crisis has affected the countries in our region, due to some weaknesses that were present during the growth phase. First, the closeness of our countries and the concentration of trade with the European Union area, as well as migratory movements, have brought about a large use of the euro in the regional economies.
The Governing Council decided to leave the current value unchanged at an annual growth rate of 4½% for the broad aggregate M3, as the evidence continues to support the assumptions which have formed the basis of the derivation of the reference value since 1999, namely a trend potential output growth of 2-2½% per annum and a trend decline in M3 income velocity of ½-1% per annum in the euro area. When comparing current developments with the reference value, it is important to bear in mind that the assessment of monetary developments is essential for long-term trends in inflation and that the reference value is therefore to be seen as a medium-term concept. Short-term movements of M3 do not necessarily have implications for future price developments. Moreover, deviations of M3 from the reference value must be analysed in conjunction with other real and financial indicators in order to understand their implications for price stability. Turning to our current assessment on the outlook for price stability in the euro area, and starting with the first pillar, M3 growth remained high in the last quarter of 2002. The continued strength in monetary growth reflects an ongoing pronounced preference for liquidity in an environment of high financial, economic and geopolitical uncertainty. In addition, the low level of interest rates in the euro area makes the holding of liquid assets relatively attractive.