The state of the public finances of the countries most exposed to the crisis has improved, albeit at very high social costs in some countries. Reforms to support competiveness have been enacted and are being implemented. Above all, work has begun to rebuild trust among member states.
Taking into account today’s decisions, risks to the outlook for price developments are broadly balanced over the medium term, with upside risks relating to stronger than expected increases in administered prices and indirect taxes, as well as higher commodity prices, and downside risks stemming from weaker economic activity.