We analyze the new threshold data for neutral pion photoproduction off
protons in the framework of heavy baryon chiral perturbation theory.
We show that large loop corrections are needed to understand the S-wav
e multipole E(0+) and that all pertinent low-energy constants can be u
nderstood within the framework of resonance exchange saturation. Previ
ous inconsistencies in the description of this reaction in the thresho
ld region are resolved.