4  BIS central bankers’ speeches  Despite this, it is clear that against the background of Germany’s strong cyclical position and the tight labour market, wages will rise faster than in the rest of the euro area. We expect effective wages to rise more than 3 % this year and next year.
4  Strengthening EMU’s institutional architecture  However, when it comes to taking action at the European level, the challenges facing monetary union are also considerable. The safeguards originally put in place for the stability of monetary union, the Stability and Growth Pact and the no bail-out clause, failed to prevent the crisis.