•  In this context, the main issues that will lead the discussion will precisely be whether globalization has altered the way monetary policy influences inflation and output (the monetary transmission mechanism) and, of most importance, whether we should change the degree to which monetary policy reacts to the output and inflation gaps or, furthermore, whether we need to redefine the set of variables to which it currently responds to.
The way forward should include at least the following elements. On the external front, the EU should continue to defend the principle of multilateralism, resisting the formation of closed blocs. A trade confrontation would lead to significant losses (Chart 5). We should not shy away from pursuing a more assertive role in fostering global cooperation.