The European Central Bank has given a precise definition of what she understands by price stability : price stability is defined as “an annual rise in the harmonised index of consumer prices for the euro area of less than 2 p.c.
But then recurrent expenditure started increasing and by 2007, salaries and benefits increased by 40% from 2002. This is unproductive expenditure and I agree with the survey that it would be difficult to reduce it under a situation where budget revenue is declining, unless drastic reforms in the public service to achieve efficiency are undertaken.