• Euro zone’s growth pattern could be uneven
• Latest information confirmed that recovery continued in H1 2010
• Expected to grow at moderate pace in 2010
• Sees unusually high uncertainty around outlook
• Inflation expectations remain firmly anchored
• Non standard measures taken and securities market programm are in line with mandate
• Monetary stance, liquidity will be adjusted as appropriate
• Ongoing recovery at global level supports demand for exports
• Recovery of activity to be dampened by balance sheet adjustments
• ECB staff project 2010 GDP growth in 0.7%-1.3% range. 2011 growth in 0.2% to 2.2% range. Forecasts broadly in line with other international forecasts
• Inflation rise in recent months mostly reflects energy prices. Can’t exclude further increase
• ECB staff project inflation in 2010 at 1.4%-1.6% range. 2011 forecast 1%-2.2% range
• Banks must expand supply of credit. Should turn to market to strengthen capital
• Welcomes recent decision to set up stability facility
• Calls for decisive action by governments to achieve lasting, credible budget consolidation
• Essential that all stick to promise to correct deficits, debt. Key that new budget targets be achieved
• Structural reform crucial to support sustainable recovery