The suspension of EU fiscal rules should not be a reason to delay the return of fiscal policy to a sustainable path. Regardless of the rules, financial markets are starting to respond more to the perceived fiscal health of individual countries than in the last two years. This brings me to my last point.
The actions of governments and central banks can also be mutually reinforcing and complementary in tackling structural challenges, such as climate change. The primary role in this regard lies with governments, as they have the power and democratic legitimacy to adopt legislation that compel industries and individuals to act sustainably. Nevertheless, there are also areas where central banks can and should contribute.