Finally, deregulation and structural reform aimed at enhancing competition and improving the functioning of individual markets (the goods, services, capital and labour markets) are also helping price stability. In this context, it is important to mention that key sectors of the economy, such as electricity and fixed telephony, are programmed to be opened to competition as from 2001 in accordance with an EU timetable.
The first risk relates to the subsiding deflationary headwinds I have already mentioned. Could it be that our monetary policy is suddenly too expansive? In short, because of the uncertainties and imprecisions involved in measuring slack and inflationary pressure, we might find ourselves behind the curve without realising it.