Inflation excluding food and energy is projected to average 2.6 per cent in 2022, 1.8 per cent in 2023 and 1.9 per cent in 2024, also higher than in the December projections. Longer-term inflation expectations across a range of measures have re-anchored at our inflation target.
Europe has some of the world’s most sophisticated and innovative companies, and they should be operating on a European scale. Third, stronger economic governance. We have already made some progress here with a new procedure to monitor and correct euro-area imbalances. But we also need to find better ways to incentivise continued structural reform, including through the use of common funds.