However, there is substantial evidence showing that in countries which experienced major competitiveness losses public sector wages often led the way for pay rises in the private sector. Furthermore, excessive private credit growth, especially mortgages, has often been the result of distortionary tax treatments. How can the problem be fixed? There are two avenues.
We will now report on the outcome of today’s meeting of the Governing Council. Based on our regular economic and monetary analyses, we decided to keep the key ECB interest rates unchanged.