By mid-1997, the economy was growing strongly and inflation was lower than our target. Had we not received a contractionary impulse from the Asian crisis, we may have been facing the need to tighten policy because of a potential overheating. No-one will ever know, but it is a possibility.
Upon accession to the European Union, new Member States are required to treat their exchange rate policies as a matter of common interest and to pursue price stability as the primary objective of monetary policy. However, beyond these obligations, the choice of the respective monetary and exchange rate strategy remains, in the first instance, a responsibility and prerogative of the individual Member States.