Let me also make a few remarks on fiscal policies in the euro area. At present the institutional framework of public finances in Europe is at a critical juncture. If we are to safeguard the soundness of public finances over the long run we cannot afford to weaken the existing institutional framework.
In this respect, we observe current discussions on reforms of the Stability and Growth Pact very closely. In our view, there are no reasons to change the letter of the Pact, although we do not deny that its implementation could be improved further, in particular as regards the analysis of structural fiscal balances.