It is for these reasons that changes in the exchange rate level are only a last resort option for an economy like ours. It should be clear, therefore, that isolationist policies and expansionary fiscal, monetary and exchange rate measures cannot be relied upon to generate sustainable economic growth. There are indeed no easy fixes. The only viable option is to compete successfully in the global market-place. I believe that this objective should be approached by pursuing a virtuous triangle of mutually-reinforcing policies: i)  increasing the amount of resources available in the economy and the efficiency with which they are employed, by cutting costs and raising productivity;  ii)  focusing on the market niches in which we can excel;  iii)  ensuring the best international market access for our products and services. On the last of these points, there is at present a lively debate on the pros and cons of different arrangements with our main trading partner, the EU. While not wishing to enter the debate at this point, I cannot fail to observe that the uncertainty surrounding this issue is causing considerable harm to Malta’s economic prospects. It is in our common interest that the direction the country is to take be clarified as soon as possible. And this within a realisation that with Malta’s main competitors themselves seeking closer trade ties with the EU, we cannot afford to fall behind.
I would like to present a briefing on accomplishments achieved during the last year, the most important of which were: The Kingdom achieved tangible progress in its AML procedures, in the framework of the follow-up process that followed the Mutual Assessment Process. The Kingdom submitted the First Follow-up Report to the MENAFATF in February 2012. The report includes the new and updated legislations issued and the actions taken to cope with the implementation of all international standards and practices issued recently. BIS central bankers’ speeches  1  The Kingdom amended the Anti-Money Laundering Law issued by Royal Decree No. (M/31) dated 11/5/1433H to cover many domestic and international requirements and developments. Its Implementing Regulation was updated as well. Here, I would like to highlight that the national AML legislation was finalized in line with international developments and standards. The Kingdom hosted a number of conferences, symposiums and training courses on combating money laundering. The most important of which was the Fifteenth MENA-FATF General Meeting held in April 2012 in Jeddah. In September 2012, the Investigation and Public Prosecution Authority, in cooperation with MENA-FATF, also hosted a symposium on “the Role and Responsibility of Public Prosecution Agencies and Judicial Organs in Combating Money Laundering and Terrorism Financing”. In September 2012, SAMA, in collaboration with the Secretariat General of the Cooperation Council for the Arab States of the Gulf, organized a workshop on Updating FATF Recommendations to Combat Money Laundering, Terrorism Financing and Weapons Proliferation.