But at the same time, falling potential growth also increases the burden on monetary policy to carry out that macroeconomic stabilisation. The policy mix in the euro area is already heavily tilted towards monetary policy given the decentralised nature of fiscal policy by 19 national governments and the limited success of European fiscal rules in creating incentives to build up national fiscal space.
Moreover, it established regular meeting mechanism with relevant trade associations to strengthen information exchange and risk surveillance communication which enhanced the function of self-regulation on the part of the trades concerned.