In addition, we need fiscal restraint to prevent a widening of public deficits so that they put upward pressure on real long-term interest rates and crowd out private spending. In the worst case, they could ultimately lead to the removal of central bank independence, with central banks being forced to rescue governments. That would signal the end of monetary and price stability.
Economic performance While inflation performance since the start of EMU has been satisfactory – excluding recent months – we have no reason to be happy with growth performance.