Draghi: Let me be clear: central bank policy is not about punishing German savers, and it is not about rewarding weak countries. The European Central Bank’s mandate is to achieve an inflation rate of just below 2% for the euro area as a whole.
Fiscal impact Government finances, which had exhibited a noteworthy correction starting 2002-03, came under renewed pressure in 2008-09 on account of higher expenditure outgoes due to (i) higher international crude oil prices (up to September 2008) and the incomplete pass-through to domestic prices (ii) higher fertiliser prices and associated increase in fertiliser prices (iii) the Sixth Pay Commission award and (iv) debt waiver scheme.