Unemployment remains high, at 25.5 per cent. With electricity price increases and last year’s personal tax increase further constraining consumer income growth, the Bank projects household consumption growth to be below 2 per cent for 2015 and 2016.
Fifth point, at the same time, the ECB should try to sustain or provide the right incentives to governments and banks. As regards governments, sound public finances are an important underpinning of central bank independence. Conducting an independent monetary policy is made significantly more difficult in the event of large budget deficits.