Allow me to stress on this occasion that in the Governing Council’s view it is crucial for the smooth functioning of EMU that all countries comply with the rules and provisions of the Stability and Growth Pact, given that the Stability and Growth Pact is an indispensable part of the institutional setting.
These differences will then be mirrored in different financial market conditions. Therefore, even in a monetary union, different economic conditions are basically the rule and not necessarily an exception or a sign of a market dysfunction.