Against this background, there is a broad international consensus, expressed in particular in the last G7 statement, that these imbalances are a challenge that calls for the implementation of structural reforms that raise the growth potential of our economies, elevate labour productivity growth and increase employment, and of sound fiscal policies over the medium term.
Let me also mention that we all agreed to state in the G7 communiqué that exchange rates should reflect economic fundamentals and that excess volatility and disorderly movements in exchange rates are undesirable for economic growth. With regard to price developments, annual euro area HICP inflation was 2.0% in December and is estimated by Eurostat to have remained at this level in January.