With this high degree of transparency, the ECB provides the public and the fiscal authorities with extensive information on how to understand, and thus to anticipate, responses of monetary policy to economic developments, including those concerning fiscal variables. Current experience with this policy framework in the EU is satisfactory.
The Maastricht Treaty provides for a clear and consistent allocation of mandates and objectives to the policy-makers. It includes transparent frameworks and procedures. Monetary and fiscal policy are offered steady guidance for action, while short-sighted behaviour is discouraged. Fiscal policy developments in the euro area have been somewhat mixed recently.