Indeed, European economic integration proceeds between the poles of deepening and enlargement, as we have seen from the recent disagreement about the timing of accession talks with candidate countries before securing the EU’s absorption capacity. The Brexit experience suggests that not even the direction of deepening and enlargement can be foreseen with precision.
However, when assessing price trends over the medium term, a number of factors should dampen inflationary pressures. First, given the past appreciation of the euro, import prices should contribute to this effect. Second, domestic cost pressures should remain moderate. In particular, wage growth should be contained in the context of a recovery which, for the time being, is expected to remain gradual.