To respond to these new risks and vulnerabilities, our regulatory framework will also have to change fundamentally from the present focus on intermediaries or “entity-based” to more “activity-based” regulation in Mission: To foster price stability and a sound financial system Macroeconomic stability  Vision: To be a centre of excellence in upholding  Page 4  light of the complex network of transactions and players in financial services.
On the one hand, the evidence suggests that the acute deflation risks have disappeared and that inflation is set to pick up over the coming years. And contrary to a widespread perception, euro area economic conditions have also been steadily improving. Euro area GDP growth has been solid in every quarter since the beginning of 2015, averaging 1.9 percent in annualised terms.