While Europe has long had a strong tradition of economic regulation, it must be acknowledged that deregulation is well underway in most countries. The change is particularly noticeable in several key sectors such as telecommunications (mobile phones, long distance calls), transportation (particularly airlines) and the power-supply industry (electricity and gas) to mention only a few. Major countries have embarked upon an ambitious overhaul of their public sectors. In countries with a large public sector, such as Italy or France, ambitious privatisation programmes have steadily reduced the number of state enterprises. In addition to privatisation, state enterprises are changing; companies that remain government-owned are becoming more profit-minded (particularly airlines, railways, etc). Tax reforms should accompany the reduction of fiscal deficits within the framework of the Stability and Growth Pact. They have already been initiated in several key countries, especially Germany and France. European firms are restructuring and becoming more internationally competitive. European firms are going through a deep restructuring process. Mergers and acquisitions have hit new records as companies seek to create national, regional or global champions (M&As close to USD 1,500 billion in 1999 compared with USD 500 billion in 1997). Venture capital and start-ups are booming as investors and entrepreneurs become more convinced that Europe can compete with America in knowledge-based industries. Heavy industries and large conglomerates are restructuring as never before. Finally, new rules on corporate governance are spreading. The outflows of foreign direct investment merely mirror the dynamism of European firms.
Øystein Olsen: Monetary policy from the perspective of a commodityexporting country Dinner speech by Mr Øystein Olsen, Governor of Norges Bank (Central Bank of Norway), at the European Central Bank, Frankfurt am Main, 19 November 2012. *  *  *  Please note that the text below may differ from the actual presentation. I would like to thank the ECB for hosting this conference on a topic that is a core interest for us in Norges Bank. It is a pleasure to visit the ECB in Frankfurt. In my remarks tonight, I will give you a glimpse into the historical background for our economic framework and the conduct of monetary policy in Norway today. As you know, Norway is in the fortunate position of having ownership rights to large natural resources. Oil was discovered in the North Sea in 1969. Back then, it soon became clear that oil and gas would be a source of substantial wealth – and government expenditure and social programmes expanded rapidly. By 1977, a surplus on the current account had turned into a deficit of 12 percent of GDP. The deficit was three times larger than that of Italy and Spain last year. Predictably, we also experienced a contraction in the non-oil tradable sector. Fiscal policy had fuelled a boom-bust economy and had to be reversed and tightened. Many Norwegians experienced a decline in real income. When oil prices fell in 1986, the Norwegian economy was hit again.