Policymakers are thus called upon to do their bit at European level and in the member states. And monetary policy is called upon – not to alleviate the failures of policymakers in resolving problems, but to continually reiterate that ensuring price stability is the primary and most important contribution of monetary policy to the stability of the monetary union.
And if they cannot do so, the ECOFIN Council should keep its word and apply the next steps of the excessive deficit procedure. Abiding by the commitments made last November would, in my view, go a long way to restoring confidence. We at the ECB think that the decision taken last November was not the appropriate one.