In my view, the interest rate cut by the ECB in April 1999 already made it very clear that, in order to prevent deflationary risks, the ECB is not targeting a zero inflation rate. And I would like to add that the ECB has quite deliberately not centred the definition of price stability around zero.
On the other hand, with respect to domestic demand, public investment is projected to follow a declining trend and private demand is likely to remain weak for the immediate future. Yet, if the increase in exports and production mentioned above continues, the recovery in corporate profits will become distinct, and this will gradually bring a positive impact on domestic private demand.