In contrast, in EET systems (Exempt, Exempt, Taxed) the first two components are tax-exempt while the end-of-period capital is taxed. The comparison between the two systems depends crucially on the tax rates applied in each stage. The main advantage of the Italian ETT system is represented by the very low tax rate on the end-of-period capital (see Cesari, Grande and Panetta, 2007).
This requirement is reflected in the two-pillar strategy of the Eurosystem, which comprises an assessment of monetary developments against a reference value for growth of M3 and a broadly based assessment of the outlook for price developments. Economic analysis for the euro area as a whole critically hinges on the availability of appropriate data.