During the European debt crisis, for example, it was strongly contractionary, thereby reducing the effectiveness of an expansionary monetary policy stance. While the euro area budgetary instrument currently under discussion is a welcome step to support convergence, it is not designed to fulfil this stabilisation function.
Work on the fiscal architecture of EMU therefore needs to continue to ensure that fiscal policies can play an effective stabilisation role. Conclusion Let me conclude. The euro, which celebrates its 20th anniversary this year, enjoys broad support among European citizens, with three in four people in the euro area in favour of it.