As I pointed out earlier, fiscal policy will have to be employed as a policy instrument to help contain inflationary pressures, when other policies (such as monetary policy) are increasingly constrained in the run-up to euro area accession.
This is especially the case in the final phase of convergence and ERM II participation, when the convergence not only of long-term interest rates, but also of short-term interest rates progressively limits the room for manoeuvre for monetary policy.