The history of the euro area is that when unemployment gets into the sevens then the labour market gets hot enough that we’re seeing nominal wage increases of the order which, if they are passed through, we will have inflation back towards our target. What’s interesting is we are now happy with the wage dynamic.
It’s worth 1/2  BIS central bankers' speeches  remembering that a system-wide perspective is the key advantage of European banking supervision, as it allows us to identify and react to euro area-wide linkages and spillovers. Applying national laws, on the other hand, can lead to a fragmented implementation of supervisory rules.