Wage developments were therefore not sustainable. Much greater policy co-ordination is now needed to reinforce the euro area dimension in national economic policymaking – in particular that a medium-term inflation rate of below, but close to, 2% over the medium term is the appropriate benchmark at the national level. The fourth lesson was that financial supervision in the Europe was lagging behind financial integration.
Many of our central banks have already established an intensive dialogue with the monetary authorities of Serbia – and in some cases this began several years ago.