Recent research shows that there are psychological and cultural barriers to financial integration we cannot neglect. For instance, economists have found empirical evidence that cultural differences between two countries lead to less trade between those countries, less portfolio investment and less direct investment.
At this juncture, there are no signs to suggest that current rates of increase in the HICP of around 1% would either decelerate significantly or, conversely, accelerate to levels which are inconsistent with the definition of price stability provided by the ESCB in October 1998. Let me provide you with a more detailed record of our assessment.