Turning to price developments, the outlook for price stability in the euro area has deteriorated and the risks to this outlook remain on the upside and they have increased. Annual inflation has remained above 3% over the past seven months and it is estimated to have increased to 3.6% in May 2008, reaching again the ten-year peak recorded in March.
Financial institutions are, then, expected to make further use of various measures that have been introduced to date such as the expanded function of the Resolution and Collection Corporation and the guideline on out-of-court procedures for corporate reconstruction.