 Ladies and gentlemen, the Vice President and I are pleased, very pleased to welcome you to our press conference. Based on our regular economic and monetary analysis, and in line with our forward guidance, we decided to keep the key ECB interest rates unchanged. As regards the non-standard monetary policy measures, on 9 March, we started purchasing Euro-denominated public sector securities as part of our expanded asset purchase program, which also comprises purchases of asset-backed securities and cover bonds. Purchases are intended to run until the end of September 2016, and in any case, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below but close to 2% over the medium term. When carrying out its assessment, the governing council will follow its monetary policy strategy and concentrate on trends in inflation, looking through unexpected outcomes in measured inflation in either direction, if judged to be transient, or to have no implication for the medium term outlook for price stability. The implementation of asset purchase programs is proceeding smoothly, with volumes in line with the announced figure of 60 billion euros of securities per month. In addition, there is clear evidence that the monetary policy measures we put in place are effective. Financial market conditions and the cost of external finance for the private sector have eased considerably over the past months, and borrowing conditions for firms and households have improved notably with a pickup in the demand for credit. Looking ahead, our focus will be on the full implementation of our monetary policy measures. Through these measures, we will contribute to a further improvement in the economic outlook, a reduction in economic slack, and a recovery in money and credit growth. Together, such developments will lead to a sustained return of inflation towards a level below but close to 2% over the medium term, and will underpin the firm anchoring of medium to long-term inflation expectations. Let me now explain our assessment in greater detail, starting with economic analysis. Real GDP in the euro area rose by 0.3%, quarter on quarter, in the last quarter of 2014. Domestic demand, especially private consumption, continued to be the main driver behind the ongoing recovery. The latest economic indicators, including survey data up to March, suggest that the euro area economy has gained further momentum since the end of 2014. Looking ahead, we expect the economic recovery to broaden and strengthen gradually. Economic demand should be further supported by ongoing improvements in financial conditions, as well as by the progress made with fiscal consolidation and structural reforms. Moreover, the lower level of the price of oil should continue to support households' real disposable income and corporate profitability, and therefore private consumption and investment. Furthermore, demand for euro area exports should benefit from improvements in price competitiveness. However, the euro area recovery is likely to continue to be dampened by the necessary balance sheet adjustments in a number of sectors, and the sluggish pace of implementation of structural reforms. While remaining on the downside, the risks surrounding the economic outlook for the euro area have become more balanced on account of the recent monetary policy decisions, the fall in oil prices and the lower euro exchange rate. According to Eurostar's flesh estimate, euro area annual HICP inflation was minus 0.1% in March 2015, up from minus 0.3% in February and minus 0.6% in January. This pattern largely reflects an increase in oil prices in euro terms since mid-January. On the basis of information available and current oil futures prices, annual HICP inflation is expected to remain very low or still negative in the months ahead. Supported by the favorable impact of our monetary policy measures on aggregate demand, the impact of the lower euro exchange rate and the assumption of base effects and somewhat higher oil prices in the years ahead, inflation rates are expected to increase later in 2015 and to pick up further during 2016 and 2017. The governing council will continue to monitor closely the risks to the outlook for price developments over the medium term, and in this context we will focus in particular on the pass-through of our monetary policy measures, as well as on geopolitical exchange rate and energy price developments. Turning to the monetary analysis, recent data confirmed the gradual increase in underlying growth in broad money, M3. The annual growth rate of M3 increased to 4% in February 2015, up from 3.7% in January. Annual growth in M3 continues to be supported by its most liquid components, with a narrow monetary aggregate M1 growing at an annual rate of 9.1% in February. Loan dynamics also gradually improved further. The annual rate of change of loans to the non-financial corporations was minus 0.4% in February after minus 0.9% in January, continuing its gradual recovery from a trough of minus 3.2% in February 2014. In this respect, the April 2015 Banklanding Survey confirms that improvements in lending conditions support a further recovery in loan growth, in particular for firms. Despite these improvements, the dynamics of loans to non-financial corporations remain subdued and continue to reflect the lagged relationship with the business cycle, credit risk, credit supply factors, and the ongoing adjustment of financial and non-financial sector balance sheets. The annual growth rate of loans to households increased further to 1% in February 2015, after 0.9% in January. The monetary policy measures we put in place should support further improvements both in borrowing costs for firms and households and in credit flows across the Euro area. To sum up, a cross-check of the outcome of the economic analysis with the signals coming from the monetary analysis confirms the need to implement firmly the Governing Council's recent decisions. The full implementation of all our monetary policy measures will provide the necessary support to the Euro area recovery and bring inflation rates towards levels below but close to 2% in the medium term. Monetary policy is focused on maintaining price stability over the medium term, and its accommodative stance contributes to supporting economic activity. However, in order to reap the full benefits of our monetary policy measures, other policy areas must contribute decisively. Given continued high structural unemployment and low potential outgrowth in the Euro area, the ongoing cyclical recovery should be supported by effective supply-side measures. In particular, in order to increase investment, boost job creation and raise productivity, both the implementation of product and labor market reforms, and actions to improve the business environment for firms need to gain momentum in several countries. A swift and effective implementation of these reforms will not only lead to higher sustainable growth in the Euro area, but will also raise expectations of permanently higher incomes and encourage both households to expand consumptions and firms to increase investment today, thus reinforcing the current economic recovery. Other policies should support the economic recovery, while remaining in compliance with the stability and growth pact. Full and consistent implementation of the pact is key for confidence in our fiscal framework. In view of the necessity to step up structural reforms efforts in a number of countries, it is also important that the macroeconomic imbalance procedure is implemented effectively in order to address the excessive imbalances as identified in individual member states. And now we are at your disposal for questions. Jonathan Gould. I was hoping to ask you about Greece, Mr. Draghi, and I was wondering in particular about Greece. There have been some reports that you've extended the ELA for Greece, for Greek banks. I was just wondering how much further you can go with the ELA. Is there any upper limit to what you can do in that regard? I think the answer to your question is entirely in the hands of the Greek government. As you know, we approve the ELA and will continue to do so, extending liquidity to the Greek banks while they are solvent and they have adequate collateral. So far, we've reached an exposure to Greece of 110 billion euros, which is the highest in the Euro area in relation to GDP. So from this viewpoint, we continue to, we are all, we've always been, and we continue to be a rules-based institution. Alessandro Speziale. Thank you, Mr. President. My first question is on QE. You have said on a couple of occasions that you don't foresee any problems in fulfilling the 60 billion target and the QE program, and that so far no problems have arisen. Should issues of scarcity arise in the coming months, maybe towards the end of the year also because of the yields going down in Germany below the deposit rate? How do you plan to address this eventual scarcity further down the road? My second question is in your opening statement, you said that you're now going to look at trends in inflation in assessing the success of the program, and could you elaborate a bit on that, please? Thank you very much. You're welcome. Now, the worries about scarce, potential scarcity of government bonds, sovereign bonds to be bought under our purchase program are just a little exaggerated. We don't see problems. All both direct and indirect evidence and market feedback show that there isn't any problem. And our program is flexible enough in an event to be adjusted if circumstances were to change. So also, some of these worries have been motivated with the need that some banks would have to retain sovereign bonds for complying with the liquidity requirements, the regulatory liquidity requirements. Now, that's also not quite clear why this should be a worry because government bonds are used for liquidity as well as is cash used for liquidity. So if they sell bonds that get cash from a regulatory perspective, it shouldn't change unless I'm mistaken. But by and large, we believe that these worries are, to say the least premature, certainly not supported by the current evidence. You are right. Yes, the second question. You are absolutely right. There is a sentence which wasn't here, but basically it's an explanatory sentence that gives the meaning of a sustained adjustment when we say, until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates below about close to a percent over the medium term. So this sentence that you rightly identified explains what we mean by that, by sustained by medium term. We're not going to be judging or assessing on the basis of a point in time observations. That's what the meaning of this sentence is. It has to be looking through unexpected outcomes and measured inflation in either direction if judged to be transient or to have no implication for the medium term outlook for price stability. Miguel Ángel García. Spanish television. Mr. President, my first question is about the BLS, as you have said, the credit standards on loans to enterprises have improved in all large euro area countries except in Spain. Do you have an explanation for that? My second question is, every day you speak here about the need of structural reforms. Recently I have read that you have mentioned Spain as an example for reforms, but Spain has 24% unemployment rate and the reduction is quite slowly. Do you think that Spain needs more reforms? Thank you. Thank you. On the first question, the bank lending survey is done over 142 banks in the euro area and this time more strongly than previous occasions, banks have been reporting better credit standards, better credit conditions. Also when we look at the composition of these answers, we see that the risk aversion factor which used to be a strong limit to credit expansion has lost a lot of its weight, not all. We see that the return of demand for credit is also a factor in this positive assessment that the bank lending survey gives. We see also that the return of competition amongst banks is playing a factor in this credit expansion. Having said that, this progress is uneven. As you rightly said, there are countries where this is more visible and countries where this is less visible and Spain is not the only one where this progress in credit standards is less visible. However, it's a matter of time. It's a matter of time. We see, and we can discuss this further later on, we see how our monetary policy measures are finding their way through the economy, namely are being passed through the banking channel to the real economy. And I will expand if there are questions on this later on. On Spain, it's, I think, out of question the fact that the Spanish economy is experiencing a strong and employment-rich recovery and almost half a million jobs being created since the end of 2013. Now, it's also unquestionable that these progress have been supported by important labor market reforms undertaken since 2012. So to sustain these developments, enhance conditions for hiring youth and long-term unemployed, and reduce, that's a key point, reduce the still elevated duality of the labor market, certainly, as you suggest, you seem to say, further action is needed on strengthening active labor market policies. So that's what, that's the answer. Brian Blackstone. Brian Blackstone with the Wall Street Journal. You mentioned the purchases going until the end of 2016 and in any case until you see a sustained adjustment in inflation path. Does that mean that the purchases could end or taper even before 2016 if you have inflation developing in a way where it rises faster than you expected, or is this something that you can rule out as, and you'll go to September 2016 no matter what? My second question back to Greece, is there not the limit on the size of the ELA but a limit in terms of the calendar? How long you can keep doing this given the delays in coming up with a financing solution for Greece? Could you at some point say there's going to be a certain date and after that we won't do ELA anymore? Thank you. Thank you. Thank you, Brian. No. The answer to the second question is no. There isn't any date. It's entirely depending on the conditions that will be in place, that are in place. And clearly the answer to all these questions about ELA and further prosecution of ELA is entirely in the hands of the Greek government and the negotiations that are taking place between the Greek government and Euro era members. The second question is I should reread my introductory statement because it says everything. Purchases are intended to run until the end of September 2016. As some of you when I first used the word intended rather than expected rightly pointed out the difference between the two concepts. This was at the beginning of December last year in an introductory statement where we changed the word and that was meant and was accepted by markets as being a powerful signal of changing in monetary policy. Purchases are intended to run until the end of September 2016 and in any case until we see a sustained adjustment in the path of inflation that is consistent with our aim of achieving inflation rates, et cetera, et cetera. And then there is this new sentence explaining exactly what we mean by sustained and by medium term. I don't think it's the case now to go beyond this. In any event I'm quite surprised frankly by the attention that a possible early exit of the program receives when we've been in this program only a month. And like a colleague of ours said today during the discussion ago in Council he said he's run several marathons. It's like asking yourself after 1K are we going to finish this marathon? So it's very much like that. Thank you. Johanna Tricke. Johanna Tricke, Market News. I would like to get back to the inflation trends. You explained what you meant by that looking at the medium term and ignoring sort of one-offs. But isn't that the way that the ECB has always conducted monetary policy? So why are you explaining this to us again or is there any change in your reaction function? And if so could you please explain that to us. My second question is on Greece. Has the governing council at all discussed increasing the haircuts on collateral the ECB accepts on Greek sovereign debt in ELA? And can you perhaps give us an idea of how likely do you think such a discussion will become in the days ahead? Thank you very much. Thank you. On the second question, the haircuts on Greece were mentioned in today's governing council, mentioned, not discussed. And so why is this? Because we decided, the governing council decided to carefully monitor where the conditions would warrant a change in the current schedule taking into account the changing environment. So we will come back on this issue in due time. On the first point, and really there is no change in our reaction function, not at all. If you meant to say that we are consistent with our previous monetary policy strategy, yes, the answer is yes, we are consistent. So why have we felt the need to explain more? Because we are talking about unconventional instruments. So the more we explain, the better these instruments will be understood by you, by the markets, by the public opinion. Claire Jones, please. Claire Jones, Financial Times. Two questions on Greece. What specific forms would Athens need to table in the coming weeks for yourself and the rest of the governing council to consider reinstating the waiver on Greek government debt? And would it be possible for you to explain the specifics of what happens to ELA support in the event that there is some? What happens? What would happen? Exactly how does it happen to ELA if there is some default by Greece to its international creditors? Well, I quickly and rarely answer the second question immediately saying that I don't even want to contemplate that. And based on the Greek government leaders' statements, this option is not contemplated by themselves as well. So I'm not ready to discuss any possible situation like that. On the waiver, let me get this once again. The ECB lifted the waiver because the conditions for a successful conclusion of the review were not there. And the precise statement that I've used at that time and that I've used on and on and on and everybody who is that to reinstate the waiver, there must be a credible perspective, a credible perspective for a successful conclusion of the review under the current arrangements. So having said that, the governing council will assess the existence of these credible perspectives in total independence. And of course, we are ready to reinstate the waiver if the conditions are there. Annette Weisbach? Thank you. I have two questions, one on also going back on the potential scarcity of bonds. Would you ever consider lowering the deposit rate if you came to such a scenario that more and more bonds trade in negative territory when it comes to their yields? And also, I would like to get your assessment how concerned are you about a bubble in the bond markets looking at the increasingly negative yields in the bond markets according to Goldman Sachs, more than 42 or 42% are actually now a negative yielding territory. Thank you. You're welcome. The answer to the first question is no. And the answer to the second question is certainly, I mean, we are certainly aware that a protracted period of time with very low interest rates is potentially conducive to financial stability in balances. So we are carefully monitoring developments. So far, we have not seen evidence of any bubble. There are certain conditions that would lead people to think that may be a bubble that we have seen before the crisis started, one of which is a serious significant increase in leverage. What we observed was an increase in debt accompanied by in the banking sector. And we are not seeing that. We're not seeing an increase in leverage accompanied by sustained bank credit development. So, but certainly we are, and if we were to assess that financial imbalances are forming, the first line of defense, of course, is use of macro-prudential instruments to some, to the extent that these imbalances are somewhat localized, that's the answer. So the answer is not change your monetary policy stance. The monetary policy stance is determined by our objective to reach price stability. Thank you. Yes, please. Romain Fonserive, AFP, the French Newswire. Good afternoon, Mr. Draghi. Going back to the issue of bonds cartity, I just wanted to ask, so you said the program is flexible enough to be adjusted, should you encounter any complications? But there are actually a lot of rules to this program, the deposit rate, the capital key, there's the issue limit. You just said that you won't lower the deposit rate. So can we... Did I say that I want to lower the deposit rate? No. The answer was no. No, no, you won't. We are not going to lower the deposit rate. You won't. No, I'm sorry, just... Sorry, mispronounced. So which rules would you consider dropping? Should there be any issues? And the second question would be about the euro. Are you comfortable with the current euro's level? And at which level would you consider that there's a risk of overshooting the ECB's inflation target in the medium term? Well, I would say that there is one word which, in a sense, puts together these two questions, that they are premature. It's like, to us, it's about scarcity of the... In the bond market, it's really premature. We really don't see any such phenomenon that it's also impossible to answer what would one do in case something that's not evident at all were to materialize. And it would be very difficult to answer to this question now. We had to see what sort of scarcity, where, who's actually scarce of these bonds. But so far, frankly, we don't have any evidence that this might happen in the future. So, but it's always good to ask difficult questions. It's just the force you want to think. On the second question is, as I've said many times, the exchange rate is not a policy target. We view the current developments, the current and recent developments of the exchange rate as the outcome of different monetary policy cycles in different jurisdictions. And the monetary policy cycles, in turn, depend on the different business cycles in the different jurisdictions. Marc Schwarz? Yes, thank you, Marc Schwarz. Also, just let me add one thing about the exchange rate and its relationship with inflation. Also, it's not obvious to... And that's one of the things that look more and more apparent in the analysis. It's not obvious what's the pass-through between changes in the exchange rate and the inflation rate. For example, we are seeing that previous appreciations of the exchange rate still have an effect on the current inflation. So it's a very... This pass-through will happen, pretty sure, but it's happening, actually, so that right now we are seeing two competing effects, the lagged effect of previous appreciation with the incipient effect of the recent depreciations. I'm saying this because it's not... It's something that's not easy to assess and it's gradual. It's taking place very gradually. Sorry. No worries. Thank you. My first question is on inflation expectations. You have stressed in the past several times the importance of the five-year, five-year break-even inflation rate. This indicator has stabilized, but it has not shown any significant increase. Are you disappointed by that fact? And the second question is on the German current account surplus. A couple of days ago, you have stressed that this high surplus clearly violates EU rules. And also in response to that, the German Finance Minister has said that the reason for the surplus is also the expansionary monetary policy and the weaker euro. So do you feel also responsible and guilty for the German surplus? Thank you. Thank you. No. I mean, the answer to the second question is no. We don't feel responsible for that. We have a mandate. And the only responsibility we feel is if we are not able to comply with our mandate. On the first question, let me just read through a few data about inflation expectations. Oh, just also answering previous questions about when would you assess that you are in a certain situation so that you would change monetary policy stance. As I said, it's very, very early to say anything like that. But also, let me give you an idea of what may come out in a certain amount of time from now is, first of all, we are not bound by one specific indicator. We'll be using a variety of indicators about inflation expectations. And second, if history and experience tells us something, it's very unlikely that the governing council will choose a route with clear quantitative constraints in its decision making. If you look back and you look at our forward guidance, how that was different from the forward guidance that was stated in other monetary policy jurisdictions, this would give you a good hint of what may come out. So it's going to be mostly a qualitative process and based on several indicators. So if we go back and look at these indicators, that's very important for a reason that I will say in a moment. In a one year forward swap rate one year ahead, the average in 2014 was 0.46 inflation expectation. Now it's 0.94. The two year ahead same indicators was 0.66 in 2014. Now it's 1.16. The four year ahead same indicator was 1.28 in 2014. It's now 1.53. And as we move forward, we go to nine year ahead, for example, was 1.73 on January 15. Now it's 1.87. The five year spot IEL swap rate was 0.57 as an average of 2014. It's now 1.20. And so most indicators actually moved up dramatically. The longest, to some extent, the longest time defined indicators moved up to but less dramatically. This is very important, I say, so that's why I spent time in reading these numbers. Because that accounted for a significant decrease in real interest rates. You may remember when last year in December, I did mention the fact that in a zero lower bound situation, where nominal interest rates are at lower bound, what determines real rates are movements in inflation expectations. And in December, they were still trending down. And real rates were going up. So much so that I think I struck a parallel between our most recent decisions about lowering nominal interest rates and the decrease in inflation expectations. And I did say that the recent, then recent changes decreases in inflation expectations have actually nullified our monetary policy decisions taken in the previous months of lower nominal rates. Now we are on a completely opposite trend and real interest rates actually declined. And that's certainly very supportive of the real economy. And that's why I'm saying that we start seeing a pass through from our monetary policy decisions to the real economy. Through significantly lower real interest rates. Mihai Vanita? Oh, by the way, what I would suggest, Christine, is that we make up for the time we've lost before. So we can stay, say, 10 minutes more. Please. Good afternoon. Mihai Vanita, Economic Analyst Romania. I want to ask Mr. Governor, if a study made by John Williams, the president of the San Francisco Fed, suggests that there was a total overall impact of quantitative easing in 10-year US Treasury bonds of about 15 to 25 basis points. What metrics should we use to measure the effectiveness of the European quantitative easing? Is it an inflation rate, or is it some other benchmark? And the second question is there, do you see an extension of the eurozone sooner than 2020? As some countries are there in terms of master criteria, but in terms of real convergence, they are still behind, lagging. Thank you. I'm sorry, I'm not sure I understood the second question. If you see that an extension of the eurozone is possible before 2020. I see. And your candidness. Well, on the first question, our metrics is essentially the inflation expectations, and in the end, actual inflation. That's the only way we define our objective. And so that's the metric we use. And so far, developments have been on the right side, because as I said before, real interest rates declined significantly. The second question, I just take note of what you said, but there are procedures for the eligibility to be a member of the euro area. So I have very little to add to that. There are criteria that all countries had to comply with at the time of accession to the euro area. Even recently, countries that have entered the euro area had to go through this and comply with these criteria. Yes, please. John Boyd, World Business Press. So Draghi, you have reiterated many times how monetary policy is not enough alone and how the speedy adoption of structural reforms is crucial to competitiveness and sustained growth. So my question is this, with only 22% of country-specific recommendations fully implemented at present, aren't you a little worried we're pumping air into a flat tire without fixing the punctures first? Or are you seeing now governments react to your call and start to take more action in this sense? Thank you. Thank you. Well, that data is indeed quite troubling. And I think if we are to run the same survey now, we'll probably find a better number. There has been some improvement. But it's very important to understand that our expansionary monetary policy finds its natural complement in structural reforms. Some people argue, and you certainly have heard them arguing this way, that accommodative monetary policy removes the incentives for governments to undertake structural reforms. It's just the other way around. It's just the other way around. Monetary policy actually accompanies, there is a dividend from a combined expansion monetary policy and the right structural reforms. But there are good reasons for doing structural reforms without too many questions. And the main reason, really, is that we are in an area where potential output is bound to grow modestly given the demographics, the age in population, the decline in the labor force. At the same time, the European Economic Commission figures show that there is an average structural unemployment rate in the euro area of 11%. And that's an average, which means that some countries, and we know which, have an unemployment rate of around 20 or even above 20%. And they had this high unemployment rate even before the financial crisis. That's why there is no other way than undertaking the needed structural reforms. And one reason why they are also important was quoted in the introductory was given in the introductory statement. One argument is, yes, structural reforms, also we have to see which structural force we talk about. Because there are reforms that are changing the education system, the judiciary, and so on, which are completely different. But the argument, which we hear often, is that structural reforms in the long run may produce some positive effect on output growth. But in the short run, they actually don't. Now, one of the reasons why this may not be entirely correct is that good sound structural reforms actually raise expected permanent income, expected permanent income, and therefore have an effect immediately on consumption for firms, for households, and on investments for firms. That's what I read in the introductory statement. So that's why there shouldn't be any doubt about doing structural reforms. Jack Ewing? Jack Ewing, New York Times. I wondered if you could just maybe elaborate a little bit more on the effects of quantitative easing that you've seen now that it's been going on for a month. For example, how much did quantitative easing contribute to the improvement in the lending survey yesterday? Are there any other transmission effects that you're observing? And also, you addressed a question on bubbles a few minutes ago. Are there any effects that worry you at all? Thank you. Well, to the second question, I really can repeat my answer that I gave before. We are aware that very low interest rates for a very long time are, I would say, it's called fertile terrain for financial stability imbalances. We've seen that in the past, and we are aware that this is a risk. So that's why our monitoring of this aspect of our monetary policy is continuous, and it's very, very careful. Having said that, we don't see, at this point in time, evidence of systemically large financial stability imbalances. And finally, the first line of defense to that is use all your macro-prudential instruments. And there is a lot of work going on as far as macro-prudential instruments are concerned, both in ECB, in ESRB, in EBA. All agencies are actually thinking, and national authorities, of course. National companies and authorities are thinking about this, because as you know, the implementation of these macro-prudential instruments is in great part at national level. Of course, the ECB can top up on that and coordinate certainly all this, but it's mostly at national level. On the first question, first, let me say that the revisions to previous forecasts for growth have been very significant. The first was the ECB revision, of course, which raised from 1% for 2015 to 1.5%. And for 2016, about the same, from 1.5 to 1.9%. All other institutions since then have come out with revisions in the same direction, not of the same amount, but in the same direction. So all institutions now see the prospects for a recovery. As I said, the downside risks are still there, but they have diminished. So the issue now is to firm up this recovery and create conditions so that it's sustained through time, that it's not only cyclical, but becomes a structural recovery. The recovery certainly due to our monetary policy, and that's because our monetary policy, a commodity monetary policy, stands, which has been in place, by the way, a long time before we actually did QE. It's finally finding its route through easier credit conditions and, as I said, significantly lower real interest rates. At the same time, and here it's not clear which is the channel of causation, certainly the monetary policy stands helped, but there must be other factors. Both consumer and business confidence have picked up, creating a very positive climate for a continuing recovery. There is a second aspect in which the monetary, even the recent monetary policy decisions have been important. You remember when we experienced this dramatic fall in oil prices, there were many worries that there may not be all that passed through into higher spending, but actually the opposite could take place, having negative second round effects on lower inflation. Now, it's quite clear that our monetary policy stands avoided that risk. And so it eased the pass through of lower oil prices into higher consumption and, in due time, higher investment. Also, there is another channel, of course, which is the difference in monetary policy cycles between different jurisdictions, which had implications on the exchange rate. So these are the main drivers that one can see. There are also other long term drivers less evident now, one of which is certainly the condition of the capital stock in the euro area, where many, many years of low investment, both private and public, would suggest that the years ahead should see a firming up of investments. There's another factor which would suggest that the pressure to deliver should gradually ease if it's not eased already. And finally, of course, there are going to be less headwinds coming from fiscal policy consolidation than what was in place a year ago. And this because of the progress that many governments have already achieved on that front. So as I said, it's silly. Now, the current recovery is basically the output, the outcome of two competing factors. Oil prices, actually not competing. They are complementing factors. Oil prices and our monetary policy stance. But there is one condition which makes a big difference. It was not in place in 2012 when we first started creating conditions for the return of confidence in the financial markets, namely the banking system. The health check that all banks had to go through last year nowadays ensures that more common monetary policy is being translated into better credit conditions, which is not something we've seen before. You remember in 2012, many of you were asking me this question. We were happy after July, August 2012 about the changes in financial markets, the Euro, the return of confidence in the Euro, the dramatic decline in sovereign spreads. And all this, however, had very hard time in being translated into better credit conditions and being translated into better credit standards for firms and households. Now, the situation seems to be different. And I think one very important reason often neglected is the better health of the banking system. And finally, let me restate one thing, that this recovery is conditional upon the full implementation of our monetary policy stance. So let's never forget that. Now, of course, there are risks. And I've dwelt on that. But if you have any questions, I'd be glad to take up. Jean-Philippe Lacou. Jean-Philippe Lacou from Lézéco. Mr. President, follow up this question of risks. We read here an introductory statement that while they are remaining on the downside, they are more balanced. And in the minutes of the last meeting in Cyprus, we read, if I understood, well, that there were a great uncertainty about recovery in particularly after 2016, it was expressed this great uncertainty. So was it discussed today, this level of uncertainty, or did it vanished? And the ECB has a more optimistic stance. That is the first question. The second one, since we understand that the level of the forthcoming of the QE as a marathon is a long distance to go from now. 16 billion purchases in months as long. 60, pardon me, until September or as long as needed. But my question is, do you exclude or is that the point where the design, maybe, of the program could be arranged in another way, different way, without changing the size effect? I mean, there are voices for instance, calling for the ECB should buy a substantially more EIB bonds, so to help this bank to finance European projects if there are any one. So about the mix within the program, is it something that could be discussed at a certain point? And Christine, maybe allow me a little add-on question. But due to this intervention of the activists at the beginning of the conference, I observe that you remain very calm. How do you manage this? Well, let me answer the two questions. The answer to the third question, I think you give it yourself, I guess. It's just, now to the first point, if I correctly remember our discussion, it was not so much about the certainty or uncertainty of the recovery after 2016. But it was about the cyclical nature of the recovery as it is today. It's quite important to remember that monetary policy, as such, cannot have a long-lasting effect whereby potential output growth increases. That's why the combination of monetary policy and structural reforms is so important. Because what gives to the economy the resilience to carry on this recovery through time is the structural reforms. So I think the discussion was not so much about certainty or uncertainty, but about what are the conditions that need to be in place after, say, 2016, maybe 2017, that would guarantee that the present cyclical recovery becomes a potential output growth recovery. So the second question is, some of your colleagues asked me the same question before. You know, one thing that you can, of course I'm a biased observer, but one thing that I hear people say is that our program has been so effective, by the way, there are three moments to measure the effectiveness of our program. One was the expectations. This thing started being expected way back last year in August. The announcement and the implementation. Each one of these three stages produced positive effects on the markets and in due time to the economy. One of the considerations that I heard being made, quite, I would say, complimentary towards the ECB, was that the design of the program and the determination with which was applied, implemented, produced some extra positive effect. And now why do you want me to change this program now or say that it's going to be changed? So it's another way to say it's premature. I will take one more from the media. I'm Claudia Perez and then we'll finish on a different note. We have the winners from the Euro Generation Award. I'll say a few words afterwards on that and we'll give the next generation the last question. Claudia, over to you. Well, I'm not from the next generation. I'm sorry. I have a question about the investigation of the European Commission about the fair tax credit that could be illegal state aid. Do you think that this issue has the potential to provoke another banking crisis in some southern European country like Spain, like Greece, like Italy, or Ireland? I know too little other than what you said, really, about this, that you call the investigation. So I don't know enough to say that, to say what's going to be the consequence I would assume that, well, let me step back. First of all, we certainly need to achieve a situation where the definitions of capital are going to be harmonized. That's one of the important aspects of having a common supervision, a one supervisor. It's also certainly important and desirable that we have a level playing field in the banking sector that actually holds true for all sectors of the economy. But I can't go beyond these points that I've, by the way, I've raised them myself in various hearings in parliament about the desirability of these changes. But I can't go beyond this to say what is going to happen exactly, what are going to be the measures taken or agreed by the various parties in this dialogue. Thank you. So now out of over 600 students. Just a moment, but let me, but there's one thing, one reassuring thing, I mean that I assume that all these people who are actually part and parcel of these big decisions are responsible people. So I take for granted that they will not cause a banking crisis. Thank you. As I was saying, out of over 600 students, 50 schools, your team won. St. Catherine's British School out from Greece and you've also expressed your wish to have a question. The floor is yours. Thank you. Thank you, Mr. President. Our question, and when I'm saying our, I'm talking on behalf of Europe's youth, we would like to ask you, although general economic prospects are slightly improving, what is the employment outlook for Europe's youth today and more specifically, when we enter the workforce in a couple of years? Thank you. Thank you. Well, it's probably the most difficult question I got today. It's, what can I, what I can say is that the present situation of the labor market is something that should be overcome. Should have been overcome many years ago. When I hear that the level of interest rates could be an incentive or a disincentive for countries' governments to change their labor markets, I ask myself, shouldn't the unemployment level be an incentive to change the labor market? Especially since these levels are not the output or not only the output of the financial crisis. Have been high, very high for many years before the financial crisis. So on top of this, in the early years, 2000s many different, several countries have passed labor legislation. Well, with the view to increasing flexibility in the labor market, they passed legislations where the labor conditions of the ones who were already employed wouldn't change at all. But the new entrance would have very flexible terms of employment. So the outcome of this was a disproportionate fall of flexibility onto the young sector of the working population. This was, as you can imagine, especially unfortunate for a variety of reasons. One of which is, was that as soon as the financial crisis struck, the first to lose the jobs were the young people, were the youth. And that's why we still have such high levels of young, of youth unemployment. So that has to change. We have to eliminate this sort of dual labor market condition and we have to make sure the flexibility as it's needed falls proportionately on all segments of the labor market. So first, restore the conditions whereby people hire, entrepreneurs, companies hire people easily. Reduce the amount of time if someone loses a job. Reduce the amount of time he or she is unemployed. Change the educational skills, improve the educational skills because very much, very much so today, we see that more and more employment is dictated by the technological skills and conditions. So education today is a most important factor for finding a job. So from this viewpoint, you are a privileged person. You and your classmates, of course. And so I think that's what's needed. And especially now that we seem to enter into a period of time where the economic conditions are improving. Thank you. Thank you very much. Thank you.