Effectiveness requires to choose the appropriate policy instrument that can materially contribute to the achievement of an objective in a sustained manner. Consistency requires using the available instruments in a way that is mutually reinforcing. The effective and consistent use of policy instruments should produce outcomes that have a durable overall positive impact on economic performance.
Let me elaborate on these propositions by examining the appropriate policy responses to the global economic challenges we face in the euro area and in China, and by assessing their effects on the EU-China economic relationship.