 Good afternoon everyone. Let me open this second session of our conference. The session is on challenges and policies to attain sustainable convergence. Building on the insights we got in the first session. So we're here to take it further, to discuss what are the policy steps to be taken to improve, to change, to overcome convergence fatigue as it may be called. Now let's look ahead a little bit. In central and south-eastern Europe, outside Turkey, the working age population is projected to fall quite appreciably. So this will make for a significant headwind to growth prospects over the medium term. Part of this will likely be appreciable emigration from the region. So there are constraints in terms of how much investment you can generate without running again large external imbalances. So prospects for capital intensive catch up are also not particularly good unless one changes something about domestic savings. Better institutions will be key for restarting the convergence process after this crisis. You can act as a catalyst, but it cannot be a substitute for a domestic reform movement. What measures can we take to notch the process forward? First, strengthening transparency and accountability. Number two, investing in state capacity. We need to consider very, very carefully the distributional fallout of the economic policies that we recommend. Where the distance from the frontier has enormous implications on what sort of reforms are critical for the country to further progress. Countries in the region, many of them, reached close enough to the frontier where a new regime has to kick in, which is basically moving from imitation to innovation. There should be both broad motivating goals that people want, rendering them willing to support reforms that are perceived as useful or necessary to achieve these goals. Your area membership offers high rewards to reforming countries, but it may also deliver stronger punishments for countries that have not done their reform homework. Reforming relative to your past may not be enough if the world moves faster. Convergence is not God-given. Convergence comes in the context of the economic area that you are integrated. The current account correction in the region comes from a big drop in the investment side. Incredibly strong dependency in the region for the youth-funded public investments. Some of the domestic firms are lagging behind in terms of their innovation capacity. The domestic firms are investing less. The main impact element is availability of people with the right skills. The risk of falling into middle-income trap, led because of the low level of innovation, pure quality of institutions and unfavorable democracies in the future. It is very imperative to prepare our economies for a gradual transition from efficiency-gaze-driven systems into innovation-driven swaths. Convergence is not here to be tanker for granted. There has not been really a convergence in terms of the quality of institutions, nor in terms of the human capital. And there are two dimensions of structural reforms. One is moving closer to the efficiency frontier and the other one potential growth rate, which is basically expanding the efficiency frontier. The first one has been happening, but if we compare Europe to other emerging countries, much less of the second one has been happening. Look at the value system of the voters. If that is not changed, then it's very difficult to expect that there will be a real possibility to do the reforms that we were talking about today.