At the same time, uncertainty is still prevailing. A cross-check of the outcome of our economic analysis with that of the monetary analysis confirms that inflationary pressures over the medium term remain contained, as suggested by weak money and credit growth. We expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households.
A major obstacle is that many collective labour agreements provide for termination of employment on reaching 65. It is subsequently quite unappealing – for both employer and employee – to enter into a new contract.