And, indeed, there is no reason to believe that they will - at all times - have the same rates of inflation within Monetary Union. I am well aware that divergences in inflation have increased lately in the euro area as a whole. For example, inflation in Ireland deviates significantly from area-wide inflation. 2.
Nevertheless, longer-term effects may follow if a sufficient number of businesses, banks or other financial sector participants find themselves in difficulties. The threat is bankruptcy, unemployment and welfare loss. This is why the economic policies to be decided in the coming weeks are so important. [Slide 5.